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 named Thatgamepublisher. This move places the studio among a growing cohort of successful indie developers who, after achieving breakout success, are expanding into publishing or funding roles to nurture other independent projects.
The trend is already evident across the industry. Innersloth, the creators of the viral sensation Among Us, launched Outersloth in 2024 and has since supported games like Clickolding and The Horror at Highrook.
Earlier this year, Kinetic Games, known for Phasmophobia, introduced Kinetic Publishing, adding titles such as Precognition—an upcoming work from Sam Barlow, the mind behind Immortality—to its roster. Pocketpair, the studio behind the quirky multiplayer adventure Palworld, has opened Pocketpair Publishing, while Landfall Games, famous for the chaotic Peak series, now operates under the Evil Landfall label. The pattern is clear: indie studios with a hit under their belt are leveraging their financial windfalls and industry insight to become patrons of the next generation of indie experiences. "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 of people 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." When Journey launched in 2012, Thatgamecompany was far from flush with cash. Chen has recounted to GamesIndustry.biz that the development of Journey nearly pushed the studio to the brink of bankruptcy, resulting in a mass layoff of staff. The experience left a lasting imprint on the company's philosophy about risk, sustainability, and the emotional power of games. Fast forward to 2019, and Sky: Children of the Light has become a global phenomenon, especially in markets like China, and has even inspired a feature‑film adaptation.
The title’s sustained success—evidenced by hundreds of millions of downloads and a thriving live‑service ecosystem—has generated a sizable profit pool that Thatgamecompany can now channel into new ventures. Chen describes the upcoming publishing arm as a vehicle for "emotionally ambitious games," a phrase that encapsulates the studio’s belief that interactive experiences can evoke feelings as profound as those found in film, literature, or music. The distribution landscape has also shifted dramatically since Journey’s era.
Back then, console manufacturers such as Sony controlled the primary channels for reaching players. Today, Chen argues, the distribution network belongs to the players themselves, who act as influencers and organic marketers. A successful indie title can amass a community of millions, and that community becomes the most potent promotional engine—often surpassing traditional media outlets like GameSpot, IGN, or even Steam. "You have an audience who, let's say, love friendslop games, and they're looking for other friendslop games.
You actually have more influence for distribution than GameSpot, than IGN, than Steam, right? So that's why I think today indie game studios are more likely to become publishers – they also have additional distribution reach," Chen notes. Another distinctive advantage that Thatgamecompany brings to the table is its unusually large female player base.
Roughly 70 % of Sky’s audience identifies as female, giving the studio a unique demographic reach that many other developers lack. Chen believes this gender‑balanced community can help bridge games that appeal to both men and women, especially those that attract newcomers to the medium. Thatgamepublisher has already signed a "couple" of projects, though details remain under wraps. In a press release, Chen outlined the publisher’s ethos: "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 lead of the publishing initiative, elaborated on the type of titles the studio is seeking. "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 emphasized that "emotional" can encompass a wide spectrum—joy, chaos, humor, melancholy—so long as the experience lingers 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 sub‑million‑dollar budgets, Thatgamepublisher is prepared to support larger, AA‑level endeavors. "We are quite flexible when it comes to funding and project scale," Xue said. "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 deal will be customized to suit the project's specific needs. Xue highlighted the studio’s developer‑first mindset: "As developers ourselves, we understand how important it is to build partnerships that are fair, transparent, and developer‑friendly, while giving teams the support they need to realise the strongest version of their game." Thatgamepublisher will operate as a full‑service publisher, offering funding, production planning, platform and launch strategy, marketing, community management, and long‑term IP development.
This comprehensive approach distinguishes it from other indie‑focused publishers such as Outersloth or Evil Landfall, which often adopt a modular, funding‑only model. Luke Keighran, founder of Silver Lining Interactive, recently observed that "the old school publishing model is dead," and that modern developers prefer to pick and choose services—whether it’s marketing, console porting, or financing—based on their individual needs. Xue confirmed that Thatgamepublisher can also provide modular arrangements, tailoring support to each developer’s requirements. However, he believes that emotionally ambitious projects often benefit from an integrated partnership that spans creative development, production, positioning, marketing, community building, and platform strategy.
By staying involved across these domains, the publisher aims to protect the emotional core of each game and shepherd it from concept to player. Ultimately, the goal is to meet each project where it stands and shape a partnership that maximizes its potential. Xue summed up the philosophy driving the new venture: "Games can connect people through shared emotional experiences and bring out the best in us. 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 went on to explain how the studio’s own experience with Sky—operating a live‑service title that has amassed over 300 million downloads and seven years of global operation—has taught them how to scale deeply felt experiences without diluting their impact. By grounding each project in its unique emotional truth, building community around it, and allowing genuine resonance to drive growth, Thatgamepublisher hopes to help developers reach wider audiences while staying true to the heart of their creations.
In short, Thatgamepublisher represents a new chapter for Thatgamecompany: a shift from solely crafting its own emotionally resonant games to fostering a broader ecosystem of indie creators who share the same vision of play as a conduit for meaningful human connection.