Thatgamecompany, the creative force behind acclaimed titles such as Flow, Flower, Journey, and the recent hit Sky: Children of the Light, has announced the creation of a new publishing division called Thatgamepublisher. This move mirrors a growing pattern among successful independent studios that, after scoring a breakout hit, expand into publishing or funding to nurture other indie projects.
For example, Innersloth, famous for Among Us, launched Outersloth in 2024 to back games like Clickolding and The Horror at Highrook. Earlier this year, Kinetic Games, the team behind Phasmophobia, introduced Kinetic Publishing, whose slate includes Precognition from Sam Barlow’s Immortality series. Pocketpair, the developers of Palworld, have started Pocketpair Publishing, while Landfall Games—known for Peak—now operates the Evil Landfall label. The trend underscores a shift where creators use their newfound capital to support peers.
Jenova Chen, co‑founder of Thatgamecompany, explains the rationale: "When an indie title that was built on a shoestring budget suddenly generates a flood of revenue, the studio often faces a dilemma. You don't want to balloon into a massive corporation overnight, yet you have excess cash that needs a purpose. The most logical place to invest is in something you understand deeply—other indie games.
That's why many small studios are turning into publishers." Thatgamecompany's own journey was far from a cash‑rich story when Journey launched in 2012. Chen told GamesIndustry.biz that the project nearly bankrupted the studio and forced a wave of layoffs. The situation transformed dramatically with Sky: Children of the Light, released in 2019. The game became a global phenomenon, especially in China, and even inspired a feature film.
Its success has given Thatgamecompany the financial breathing room to fund what it calls "emotionally ambitious" games. The distribution landscape has also evolved.
Chen notes that during Journey's era, platforms like PlayStation controlled the primary distribution channels. Today, however, "the distribution network is owned by the players, who are influencers." A popular indie title can now reach millions of users directly through social media, streaming, and word‑of‑mouth, providing a powerful, organic marketing engine. "If your audience loves a certain style of game, they become your most effective distributors—more so than traditional media outlets," Chen adds.
Another distinctive advantage for Thatgamecompany is its audience composition. Roughly 70% of Sky's player base is female, giving the studio a broader gender reach than many competitors. Chen believes this unique demographic overlap can help promote games that appeal to both men and women, especially titles that attract newcomers to gaming.
Thatgamepublisher has already signed a few projects, though details remain under wraps. In a press release, Chen articulated the publisher's mission: "When we first started making games, many doubted whether interactive experiences could move people as profoundly as film, literature, or music. Over the years, we've seen games forge lifelong friendships, heal personal struggles, reconnect families, and restore hope. Those moments convinced us that games can touch lives in deep ways.
Thatgamepublisher exists to help creators worldwide explore new emotional frontiers and bring those visions to players." SJ Xue, Thatgamecompany's vice president of growth and corporate development and the leader of the publishing effort, told GamesIndustry.biz that the studio is hunting for titles that "move people through play." He emphasized that genre, platform, or team size are irrelevant; what matters is whether a game can leave a lasting emotional imprint after the screen goes dark. "Emotional" can encompass joy, chaos, humor, or melancholy—any feeling that lingers with the player.
While many indie publishers focus on sub‑million‑dollar budgets, Thatgamepublisher is willing to back larger, AA‑level projects. Xue explained that the publisher's funding terms are flexible and tailored to each project's needs, aiming for fair, transparent, and developer‑friendly deals. The company positions itself as a full‑service publisher, offering financing, production planning, launch strategy, marketing, community management, and long‑term IP support. This contrasts with other indie publishers that often provide only funding or adopt a modular service model.
Luke Keighran of Silver Lining Interactive recently remarked that "the old school publishing model is dead," noting that modern developers prefer to pick and choose services—whether it's marketing, console porting, or funding—rather than signing over full control. Xue echoed this sentiment, stating that Thatgamepublisher can customize its involvement, from modular support to deep, integrated partnerships, especially for projects with ambitious emotional goals.
The core philosophy driving the new label is simple: games can forge shared emotional experiences that bring out the best in people. Chen reflected that this belief has shaped every title Thatgamecompany has released, from the meditative Flow to the heartfelt Sky. He added that the studio's experience running Sky as a live‑service title—with over 300 million downloads and seven years of global operation—has taught them how to scale deeply felt experiences without diluting their essence. In summary, Thatgamepublisher aims to identify creators who are pushing the emotional envelope, provide them with the resources and expertise to refine their visions, and help those games find an audience that will remember them long after the gameplay ends.
By leveraging its unique player base, industry experience, and flexible publishing model, Thatgamecompany hopes to amplify the impact of indie games worldwide and nurture the next generation of emotionally resonant interactive art.