Thatgamecompany, the acclaimed studio behind titles such as Flow, Flower, Journey, and the widely celebrated Sky: Children of the Light, has announced the creation of a new publishing division named Thatgamepublisher. This move follows a growing pattern in the indie sector where successful developers leverage their hit titles to become publishers or investors for other independent projects.
Recent examples include Innersloth, the creators of Among Us, which launched Outersloth in 2024 to back games like Clickolding and The Horror at Highrook; Kinetic Games, known for Phasmophobia, which started Kinetic Publishing and is now supporting titles such as Precognition by Sam Barlow; Pocketpair, the team behind Palworld, which introduced Pocketpair Publishing; and Landfall Games, the studio behind Peak, which formed the Evil Landfall label. The trend reflects a broader shift: indie studios that achieve breakout success often find themselves with surplus capital and a desire to stay true to their small‑team ethos while still putting that money to good use.
"Successful indie games are usually built on shoestring budgets," explains Jenova Chen, co‑founder of Thatgamecompany. "When a title takes off, you suddenly have a lot of cash, but you don't want to balloon into a massive corporation. The natural answer is to invest in other indie projects that you understand and care about.
That's why many indie studios are stepping into publishing." Thatgamecompany's own journey illustrates the stakes involved. When Journey launched in 2012, the studio was nearly bankrupt and had to lay off most of its staff. Chen recalled to GamesIndustry.biz that the financial strain was severe, and the company barely survived.
Fast forward to 2019, Sky: Children of the Light became a global phenomenon, especially in China, and even inspired a feature film. The game has amassed hundreds of millions of downloads and generated substantial revenue, giving Thatgamecompany the financial freedom to invest in what it calls "emotionally ambitious" games.
Chen also notes a fundamental change in how games reach audiences. In the early 2010s, distribution was dominated by platform holders like PlayStation. Today, the distribution network belongs to the players themselves, who act as influencers and word‑of‑mouth marketers. A successful indie title can now reach millions of players organically, providing a powerful promotional engine that rivals traditional media outlets.
"If you have an audience that loves a certain style of game, they become your strongest distribution channel," Chen says. "Our community is uniquely balanced: roughly 70% of Sky players are female, which is unusual in the industry. When we showcase a game that appeals to both genders, we tap into a diverse, often non‑gamer demographic that can broaden a title's reach." Thatgamepublisher has already signed a handful of projects, though the specifics remain under wraps. In a press release, Chen outlined the publisher's mission: "When we first began making games, many questioned whether interactive experiences could move people as deeply as film, literature, or music.
Over the years, games have proven they can forge lifelong friendships, heal personal struggles, reconnect loved ones, and restore hope. Thatgamepublisher exists because we believe countless creators worldwide are exploring new emotional frontiers, and we want to help them bring those visions to life." SJ Xue, Thatgamecompany's vice‑president of growth and corporate development and the leader of the publishing initiative, told GamesIndustry.biz that the studio is looking for titles that "move people through play." He emphasized that genre, platform, or team size are not primary concerns. "We are open to any team, any stage of development, even prototypes," Xue explained. "What matters is whether the game reaches for meaningful emotional territory and uses interactivity to take players there." According to Xue, "emotional" can encompass joy, chaos, humor, or melancholy.
The key question is: "Will this stay with someone after the screen goes dark?" If a project aspires to that lasting impact, Thatgamepublisher wants to discuss it. While many indie publishers focus on sub‑million‑dollar budgets, Thatgamepublisher is prepared to fund larger, AA‑level projects.
"We are flexible on funding and scale," Xue said. "We can work with solo developers who have huge creative ideas or with larger teams that need AA‑budget support." The terms of each publishing deal are tailored to the individual project's needs.
Xue highlighted that, as developers themselves, the team understands the importance of fair, transparent, and developer‑friendly partnerships. The publisher aims to provide not just money but also production planning, platform strategy, marketing, community management, and long‑term IP development. This full‑service approach distinguishes Thatgamepublisher from other indie publishers that often adopt a modular, funding‑only model.
Luke Keighran, founder of Silver Lining Interactive, observed that the old‑school publishing model is effectively dead, replaced by a flexible system where developers choose the services they need—be it marketing, console porting, or funding. Xue echoed this sentiment, stating that Thatgamepublisher can offer modular arrangements for funding, marketing, or other specific support, but for emotionally ambitious projects they prefer an integrated partnership.
"Creative development, production, positioning, marketing, community, and platform strategy are deeply interconnected for these games," he said. "Being involved across those areas lets us protect the emotional core of the game and help the team bring that vision to players." The underlying philosophy driving the publisher is the belief that games can forge shared emotional experiences and bring out the best in people.
This conviction has guided Thatgamecompany's own portfolio—from the meditative flow of Flow and the delicate beauty of Flower to the communal pilgrimage of Journey and the expansive wonder of Sky. Chen stresses that while the studio's own titles embody this ethos, the potential for emotionally resonant games extends far beyond a single studio.
"Around the world, creators are exploring new ways to make players feel," Chen noted. "We want to help those ideas reach audiences. Our experience running Sky as a live‑service with over 300 million downloads and seven years of global operation has taught us how to scale deeply felt experiences without diluting their meaning.
By understanding each game's emotional truth, building from its community, and allowing genuine resonance to create scale over time, we aim to help every project reach farther while staying true to its heart." In summary, Thatgamepublisher represents Thatgamecompany's evolution from a small indie studio into a full‑service publisher dedicated to nurturing emotionally driven games of any size. By offering flexible financing, comprehensive production support, and a philosophy centered on lasting emotional impact, the new label hopes to empower a new generation of developers to create experiences that linger long after the console is turned off.