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 reflects a broader industry pattern in which independent studios that have achieved breakout success expand into publishing or funding roles to nurture other indie 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 now supports titles such as Precognition from Sam Barlow; Pocketpair, the developers of Palworld, which introduced Pocketpair Publishing; and Landfall Games, the studio behind Peak, which rolled out the Evil Landfall label. The trend underscores how profitable indie hits generate surplus capital that founders prefer to reinvest in familiar, creative endeavors rather than scale their own teams dramatically.
"Successful indie games are often built on shoestring budgets," explains Jenova Chen, co‑founder of Thatgamecompany. "When a title takes off, you suddenly have cash you didn't anticipate, but you also don't want to turn your small, tight‑knit studio into a massive corporation.
The logical place to allocate that money is into projects you understand—other indie games. That's why many indie studios are becoming publishers." Thatgamecompany's own history illustrates the stakes involved.
When Journey launched in 2012, the project nearly bankrupted the studio and resulted in a wave of layoffs, as Chen recounted to GamesIndustry.biz earlier this year. The situation is dramatically different now.
Sky: Children of the Light, released in 2019, has become a global phenomenon, especially in the Chinese market, and even inspired a feature film. The revenue generated by Sky provides Thatgamecompany with the financial runway to back what it calls "emotionally ambitious games"—titles that aim to move players on a deep, personal level.
Chen also notes a shift in distribution dynamics. In the era of Journey, distribution channels were dominated by platform owners such as Sony.
"Today," he says, "the distribution network belongs to the players themselves, who act as influencers. A successful indie game can amass millions of players who become its most effective marketing engine." He adds that Thatgamecompany enjoys a unique 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 equally to men and women, we tap into a distinct overlap, because many of our players are newcomers to gaming altogether," Chen explains. While the exact slate of titles that Thatgamepublisher will support remains under wraps, Chen outlined the publisher's philosophy in a press release: "When we first began making games, many questioned whether interactive experiences could move people as profoundly 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.
Those moments convinced us that games can touch lives in profound ways. 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 seeking 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," Xue said.
"What matters is whether the game reaches for meaningful emotional territory and uses interactivity to get players there." Xue elaborated on what "emotional" can mean: joy, chaos, humor, or any feeling that lingers after the screen goes dark. "If a game can stay with someone after they've put the controller down, we want to talk," he added. Unlike many indie publishers that focus on sub‑$1 million budgets, Thatgamepublisher is prepared to back larger, AA‑level projects. "We are flexible regarding funding and project scale," Xue noted.
"We can work with solo creators bursting with creativity or larger teams with more substantial budgets." The terms of each publishing deal will be tailored to the project's needs. Xue stressed that, as developers themselves, the team understands the importance of fair, transparent, and developer‑friendly partnerships. The publisher aims to provide the right amount of support without imposing restrictive conditions.
Thatgamepublisher will operate as a full‑service publisher, offering financing, production planning, platform and launch strategy, marketing, community management, and long‑term IP development. This contrasts with other indie publishers like Outersloth and Evil Landfall, which often adopt a funding‑only model.
The industry is moving toward modular publishing services, allowing developers to pick and choose the assistance they require—be it marketing, console porting, or full‑scale production support. Luke Keighran, founder of Silver Lining Interactive, told GamesIndustry.biz that "the old school publishing model is dead" and that flexibility is now the norm.
Xue reiterated that Thatgamepublisher can adapt its involvement based on a developer's specific needs, offering modular arrangements for funding, marketing, or other support. However, he believes that emotionally ambitious projects often benefit from a more integrated partnership, where creative development, production, positioning, marketing, community, and platform strategy are tightly interwoven. "Being involved across those areas lets us protect the emotional core of the game and help the team carry that vision all the way to players," he said.
Ultimately, the publisher's goal is to meet each project where it stands and shape a partnership that maximizes value for the developer. Xue pointed to the company's founding belief that games can connect people through shared emotional experiences and bring out the best in humanity.
This philosophy has guided Thatgamecompany's own creations—from Flow and Flower to Journey and Sky—and now informs its publishing ambitions. "We have learned that emotionally ambitious games often need a different playbook," Xue explained. "The heart of a project may not be obvious at the outset; it can emerge through prototypes, iteration, quiet discoveries, and the right creative conversations. Our role is to protect that process, giving developers the space, guidance, and alignment they need to uncover the strongest version of their work." Drawing on its experience operating Sky: Children of the Light as a live‑service title with over 300 million downloads and seven years of global operation, Thatgamepublisher believes it can help other creators scale their emotionally resonant experiences without diluting their impact.
By understanding each game's emotional truth, building from its community, and allowing genuine resonance to drive growth, the publisher aims to help projects reach broader audiences while staying true to their core feeling. In summary, Thatgamepublisher represents Thatgamecompany's evolution from a small indie studio into a supportive hub for creators seeking to craft games that move players on a profound level.
By offering flexible, full‑service publishing tailored to the unique emotional ambitions of each title, the new arm hopes to foster a new wave of games that can touch lives, spark conversations, and leave lasting impressions long after the gameplay ends.