Thatgamecompany, the creative force behind acclaimed titles such as Flow, Flower, Journey, and the recent hit Sky: Children of the Light, has announced the formation of a new publishing division called Thatgamepublisher. This move follows a growing pattern among successful independent studios that, after achieving a breakout success, expand into publishing or funding roles to nurture other indie projects.
Notable 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, the developers of Phasmophobia, which started Kinetic Publishing and is supporting titles such as Precognition from Sam Barlow; Pocketpair, known for Palworld, which has begun Pocketpair Publishing; and Landfall Games, the studio behind Peak, which introduced the Evil Landfall label. The trend reflects a desire among small teams to reinvest surplus revenue into the indie ecosystem rather than scaling up into large corporate structures. "Successful indie games are often built on shoestring budgets," explains Jenova Chen, co‑founder of Thatgamecompany.
"When a title takes off, you suddenly have a cash surplus, but you don’t necessarily want to become a thousand‑person studio. The logical place to allocate those funds is into something you understand—other indie games. That’s why many indie developers are turning into publishers." Thatgamecompany’s own journey to financial stability was anything but smooth.
The release of Journey in 2012 nearly bankrupted the studio, forcing a mass lay‑off, as Chen recounted to GamesIndustry.biz earlier this year. The situation changed dramatically with Sky: Children of the Light, launched in 2019. The game has performed exceptionally well worldwide, especially in China, and even inspired a feature‑film adaptation. The revenue generated by Sky now gives Thatgamecompany the capacity to fund what it calls "emotionally ambitious" projects.
Chen also notes a shift in how games reach audiences. "When Journey came out, distribution was controlled by platforms like PlayStation.
Today, the distribution network belongs to the players themselves, who act as influencers. A successful indie title can amass millions of players who become its strongest distribution channel." He adds that Thatgamecompany enjoys a distinctive demographic advantage: roughly 70 % of Sky’s player base is female, giving the studio a broader gender reach than many competitors. "If we highlight a game that appeals to both men and women, we tap into a unique overlap, especially because many of our players are newcomers to gaming." While Thatgamepublisher has already signed a "couple" of titles, details remain under wraps. In a press release, Chen outlined the publisher’s mission: "When we first started making games, many doubted whether interactive experiences could move players as deeply as film, literature, or music.
Over the years, games have proven their capacity to 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 effort, told GamesIndustry.biz that the company is hunting for games that "move people through play." He emphasized that genre, platform, or team size are not primary criteria. "We are open to any team, any stage of development, even prototypes. What matters is whether the game reaches for meaningful emotional territory and uses interactivity to get players there." "Emotional" can encompass joy, chaos, humor, or melancholy.
"The key question is: will this stay with someone after the screen goes dark? If a game aims for that lingering impact, we want to talk." Unlike many indie publishers that focus on sub‑million‑dollar budgets, Thatgamepublisher is prepared to back larger, AA‑level projects. Xue explained that the publisher’s funding model is flexible, catering to solo creators with boundless imagination as well as larger teams seeking substantial budgets. Terms such as revenue share will be negotiated on a case‑by‑case basis, reflecting the studio’s own experience as developers who value fair, transparent, and developer‑friendly partnerships.
Thatgamepublisher is positioning itself as a full‑service publisher, offering not only capital but also production planning, platform strategy, launch support, marketing, community management, and long‑term IP development. This contrasts with publishers like Outersloth or Evil Landfall, which primarily provide funding. The industry is moving toward modular publishing models, where developers can pick and choose services they need.
Luke Keighran of Silver Lining Interactive summed it up: "The old school publishing model is dead; today developers select the exact support they require, whether it’s marketing, console ports, or funding." Xue confirmed that Thatgamepublisher can adopt modular arrangements when appropriate, but for emotionally ambitious titles he prefers an integrated partnership. "Creative development, production, positioning, marketing, community, and platform strategy are often deeply intertwined for these projects.
Being involved across those areas lets us protect the emotional core of the game and help the team carry that vision to players." The overarching philosophy driving the publisher is the belief that games can forge shared emotional experiences and bring out the best in people. Chen reflected that this conviction has guided every Thatgamecompany title—from Flow and Flower to Journey and Sky. He added that the studio’s experience running Sky as a live‑service with over 300 million downloads and seven years of global operation has taught them how to scale heartfelt experiences without diluting their impact. In summary, Thatgamepublisher aims to identify creators who are pushing emotional boundaries, provide them with the resources and expertise needed to refine their visions, and ultimately deliver games that resonate long after the console is turned off.
By leveraging its unique audience demographics, its track record of emotionally resonant games, and a flexible, full‑service publishing approach, Thatgamecompany hopes to nurture the next generation of games that move people through play.