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 places the studio among a growing cohort of independent developers who, after achieving a breakout success, are leveraging their newfound resources to nurture and fund other indie projects. Recent examples include Innersloth, the creators of the viral sensation 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 is now supporting titles such as Precognition from Sam Barlow; Pocketpair, the team behind Palworld, which introduced Pocketpair Publishing; and Landfall Games, the studio behind Peak, which has rolled out the Evil Landfall publishing label.
The pattern is clear: a successful indie title generates a surplus of capital, and the original developers choose to reinvest that capital in the very ecosystem that helped them thrive. "When an indie game takes off, it often does so on a shoestring budget," explains Jenova Chen, co‑founder of Thatgamecompany. "Suddenly you have cash flowing in, but you don’t want to balloon into a massive corporation.
You want to allocate that money where you have expertise and passion—namely, other indie games. That’s why many small studios are becoming publishers." Thatgamecompany’s own journey to financial stability was anything but smooth. The studio’s 2012 masterpiece Journey nearly drove it to bankruptcy, resulting in a wave of layoffs, as Chen recounted to GamesIndustry.biz earlier this year. However, the release of Sky: Children of the Light in 2019 marked a dramatic turnaround.
The game not only achieved massive commercial success, especially in the Chinese market, but also inspired a feature film adaptation. The revenue generated from Sky now gives Thatgamecompany the freedom to allocate funds toward what it calls "emotionally ambitious" games—projects that aim to evoke deep, lasting feelings in players.
Chen also notes a fundamental shift in how games reach audiences. In the era of Journey, distribution channels were dominated by platform holders like PlayStation. Today, the distribution network is effectively owned by the players themselves, who act as influencers and organic marketers. A successful indie title can amass millions of dedicated fans who become its most powerful distribution engine, often outpacing traditional media outlets such as GameSpot, IGN, or even Steam.
"Our community is uniquely female‑centric," Chen adds. "Around 70 % of Sky’s player base is women, and many of them are newcomers to gaming. When we spotlight a title that appeals to both men and women, we reach an audience that rarely overlaps with other publishers. This gives us a distinctive edge in promoting emotionally resonant experiences." Thatgamepublisher has already entered into agreements with a "couple" of undisclosed projects.
In its launch statement, Chen articulated the publisher’s philosophy: "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 witnessed games forging lifelong friendships, healing personal struggles, reconnecting families, and restoring 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 driving force behind 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 irrelevant; what matters is a game’s capacity to linger in a player’s mind after the console is turned off. "Emotional" can encompass joy, chaos, humor, or melancholy—any experience that stays with the player beyond the final frame.
Unlike many indie publishers that limit themselves to sub‑million‑dollar budgets, Thatgamepublisher is prepared to back larger, AA‑level projects. Xue explained that the publisher’s funding terms are flexible and will be tailored to each project's needs. "As developers ourselves, we understand the importance of fair, transparent, and developer‑friendly partnerships," he said.
"Our goal is to provide the support necessary for teams to realize the strongest version of their game." Thatgamepublisher is positioning itself as a full‑service publisher, offering not only capital but also production planning, platform strategy, marketing, community management, and long‑term intellectual‑property development. This comprehensive approach contrasts with other indie publishers such as Outersloth or Evil Landfall, which often adopt a modular, funding‑only model. Luke Keighran, founder of Silver Lining Interactive, recently remarked that "the old school publishing model is dead" and that developers now prefer to pick and choose services—whether it’s marketing, console conversion assistance, or funding—that best suit their needs. Xue reiterated that Thatgamepublisher can adapt its involvement on a case‑by‑case basis, offering modular arrangements for funding, marketing, or other specific support.
However, he also stressed that emotionally ambitious projects often benefit from a more integrated partnership. By staying involved across creative development, production, positioning, marketing, community engagement, and platform strategy, the publisher can protect the game's emotional core and guide it from concept to player. The overarching rationale for developers to join Thatgamepublisher lies in the studio’s founding belief: games have the power to connect people through shared emotional experiences and bring out the best in humanity. This ethos has shaped every title Thatgamecompany has released, from the meditative Flow to the tender Flower, the pilgrimage‑like Journey, and the communal Sky.
Chen acknowledges that this vision extends beyond a single studio; creators worldwide are pushing the boundaries of what games can make people feel, and Thatgamepublisher aims to be the conduit that brings those ideas to a global audience. According to Xue, emotionally ambitious games often require a different playbook. Their core emotional truth may not be evident at the outset; it can emerge through prototypes, iterative design, quiet discovery, and thoughtful conversation. The publisher’s role is to safeguard that process, providing developers with the space, guidance, and alignment needed to uncover the most compelling version of their work.
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 worldwide operation—Thatgamepublisher claims to understand how to scale heartfelt experiences without diluting their impact. By grounding each project in its emotional truth, building from its community, and allowing genuine resonance to drive growth, the publisher aims to help every game reach a broader audience while staying true to the feelings at its heart.
In summary, Thatgamecompany’s new publishing arm represents a strategic evolution from a solitary indie developer to a supportive hub for other creators seeking to craft games that move players on a deep, emotional level. With flexible funding, full‑service support, and a clear philosophical commitment to the power of emotional play, Thatgamepublisher is poised to become a significant player in the indie publishing landscape.