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 studios that have scored a breakout hit use their newfound resources to back other independent developers.
Recent examples include Innersloth, the creators of Among Us, which launched the Outersloth label in 2024 to support games like Clickolding and The Horror at Highrook; Kinetic Games, known for Phasmophobia, which introduced Kinetic Publishing with projects such as Precognition from Sam Barlow; Pocketpair, the team behind Palworld, which started Pocketpair Publishing; and Landfall Games, the developers of Peak, which formed the Evil Landfall publishing arm. The trend reflects a broader shift toward indie studios taking on a dual role of creator and financier. "This is a very common pattern because number one, successful indie games usually are on a shoestring, and if the game becomes very successful, suddenly you have an overflow of cash," explains Jenova Chen, co‑founder of Thatgamecompany.
"But then you are a small team making games, you don't want to suddenly become a thousands‑person company, right? And then you can't really spend the money, so with additional money, where can you invest? You want to invest in something you understand, something you really are familiar with.
So investing into other indie games is a natural choice for everyone, and that's why many indie companies are doing that." The financial landscape was dramatically different when Journey launched in 2012. Chen has recounted that the production of Journey nearly drove the studio to insolvency, resulting in a mass layoff of staff. In contrast, Sky: Children of the Light, released in 2019, has generated massive revenue, especially in the Chinese market, and even inspired a feature‑film adaptation. The success of Sky has given Thatgamecompany the capital to pursue a new mission: backing "emotionally ambitious" games that push the medium’s expressive boundaries.
Chen also notes a shift in how games reach audiences. In the early 2010s, distribution channels were dominated by platform holders like Sony. Today, he argues, "the distribution network is owned by the players, who are influencers." A popular indie title can now amass millions of players who act as organic promoters, providing a distribution reach that rivals traditional media outlets such as GameSpot, IGN, or even Steam itself. This democratized reach encourages indie studios to step into publishing roles because they already possess a built‑in audience eager for similar experiences.
Another distinctive advantage for Thatgamecompany is its demographic profile. Chen points out that roughly 70 % of Sky’s player base is female, giving the studio a broader gender appeal than many of its peers. "If we promote or feature a game that would be appealing to men and women equally, our audience is going to have a very unique overlap, because there are many of our players who have never played games before," he says. This diverse audience can be a powerful catalyst for games that aim to resonate across gender lines.
Thatgamepublisher has already signed a "couple" of projects, though details remain under wraps. In the official press release, Chen articulated the publisher’s guiding philosophy: "When we first began making games, many people questioned whether interactive experiences could move players as deeply as film, literature or music.
Over the years, games have shown us what impact they can have on people. Lifelong friendships formed. Personal struggles healed. Loved ones reconnected.
Hope restored. Those moments convinced us that games are capable of touching lives in profound ways. Thatgamepublisher exists because we believe there are countless creators around the world discovering new emotional frontiers for this medium, 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, elaborated on the type of titles the new label seeks. "We are looking for games that move people through play," Xue told GamesIndustry.biz.
"The typical genre or platform restrictions would not apply to us. We are open to teams of any size, projects at any stage, and ideas still being prototyped.
What matters is not the label, genre, scale, or format, but whether the game reaches for meaningful emotional territory and uses interactivity to take players there." Xue further defined "emotional" as a broad spectrum that can include joy, chaos, humor, or melancholy. The key question, he says, is whether a game will linger in a player's mind after the console is turned off. "If a game is chasing that, we want to have the conversation," he added.
While many indie publishers focus on micro‑budget titles under $1 million, Thatgamepublisher is prepared to support larger, AA‑level projects. "We are quite flexible when it comes to funding and project scale," Xue explained. "We are open to working with everyone from solo developers with immense creativity to larger teams with AA‑level budgets." The terms of each publishing agreement will be tailored to the specific needs of the developer.
Xue emphasized that, as former developers themselves, the team understands the importance of fair, transparent, and developer‑friendly deals. They aim to provide the resources necessary for creators to realize the strongest possible version of their games without imposing restrictive recoup structures. Unlike some indie publishers that operate on a funding‑only model, Thatgamepublisher is launching as a full‑service operation.
It will offer financing, production planning, platform strategy, launch coordination, marketing, community management, and long‑term IP development. This comprehensive approach mirrors a broader industry shift toward modular publishing, where developers can pick and choose the services they need. Luke Keighran, founder of Silver Lining Interactive, recently told GamesIndustry.biz that "the old school publishing model is dead" and that modern publishers are more about flexible, à‑la‑carte support. Xue reiterated that Thatgamepublisher can adapt its involvement based on each project's requirements, offering modular arrangements for funding, marketing, or other specific support.
However, he believes that emotionally driven projects often benefit from an integrated partnership that ties together creative development, production, positioning, marketing, community engagement, and platform strategy. By staying involved across these domains, the publisher can protect the emotional core of a game and help the team carry that vision all the way to players.
When asked why developers should consider partnering with Thatgamepublisher, Xue pointed to the studio’s founding belief that games can forge deep emotional connections and bring out the best in people. "That belief has shaped everything Thatgamecompany has made, from Flow and Flower to Journey and Sky: Children of the Light.
But we also know this path is bigger than the work of one studio. Around the world, creators are exploring their own ways to expand what games can make people feel, and we want to help those ideas find their way to players," he said. He added that emotionally ambitious games often require a different playbook. The heart of such projects may not be evident at the outset; it can emerge through prototypes, iteration, quiet discoveries, and meaningful creative conversations.
Thatgamepublisher aims to safeguard that process by providing developers with space, guidance, and alignment to uncover the strongest expression of their vision. Drawing on its experience running Sky: Children of the Light as an emotional live‑service title—now boasting over 300 million downloads and seven years of global operation—Thatgamepublisher believes it has the expertise to scale heartfelt experiences without diluting their impact.
"By understanding the emotional truth of each game, building from its players and community, and allowing genuine resonance to create scale over time, we aim to help every project reach farther while staying true to the feeling at its heart," Xue concluded. In summary, Thatgamepublisher represents a strategic expansion for Thatgamecompany, leveraging its financial success, diverse audience, and deep understanding of emotional game design to support a new generation of indie creators.
Whether a solo developer with a prototype or a mid‑size studio with a AA budget, the publisher promises flexible, full‑service support aimed at bringing emotionally resonant experiences to a global player base.