Thatgamecompany, the creative force behind acclaimed titles such as Flow, Flower, Journey, and the widely celebrated Sky: Children of the Light, has announced the creation of a new publishing division called Thatgamepublisher. This move follows a growing pattern among successful independent studios that, after scoring a breakout hit, choose to diversify into publishing or financing to uplift other indie developers.
Recent examples include Innersloth, the makers 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 projects such as Precognition from Sam Barlow; Pocketpair, the studio behind Palworld, which introduced Pocketpair Publishing; and Landfall Games, the creators of Peak, which formed the Evil Landfall label. The trend reflects a broader shift in the industry where creators with cash flow from a hit title look to reinvest that capital into projects that align with their artistic sensibilities. "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." The financial reality was starkly different when Journey launched in 2012. 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.
Fast forward to 2019, Sky: Children of the Light became a global phenomenon, especially in the Chinese market, and even inspired a feature film. The success of Sky has generated sufficient profit for Thatgamecompany to consider allocating resources toward "emotionally ambitious games," a phrase the studio uses to describe projects that aim to evoke deep, lasting feelings in players. Chen also highlights a shift in how games reach audiences.
In the early 2010s, distribution channels were dominated by platform holders like PlayStation. Today, however, "the distribution network is owned by the players, who are influencers." A viral indie title can amass millions of players who, in turn, become its most effective promoters—often more powerful than traditional media outlets such as GameSpot, IGN, or even Steam. This democratization of distribution gives indie studios a stronger incentive to become publishers themselves, leveraging their own community to amplify new releases.
Another distinguishing factor for Thatgamecompany is its demographic reach. Chen notes that roughly 70 % of Sky’s player base is female, giving the studio a broader gender balance 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.
Although Thatgamepublisher has already signed a "couple" of projects, the titles remain under wraps. In a press release, Chen articulated the publisher’s mission: "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 effort, elaborated on the type of games the label seeks. "We are looking for titles 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 clarified that "emotional" can encompass a wide range of feelings—joy, chaos, humor, melancholy—as long as the experience lingers after the console is turned off. This philosophy guides the publisher’s selection process and informs its flexible funding model.
While many indie publishers limit themselves to sub‑million‑dollar budgets, Thatgamepublisher is prepared to back larger, AA‑level projects. "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 specifics of each publishing agreement, such as revenue share and recoupment terms, will be tailored to the individual project's needs. Xue emphasized that, as developers themselves, the team understands the importance of fair, transparent, and developer‑friendly partnerships that provide the necessary support to realize a game's full potential. Unlike some newer indie publishing outfits that operate on a purely funding‑only basis, Thatgamepublisher intends to function as a full‑service publisher.
It will offer financing, production planning, platform strategy, launch support, marketing, community management, and long‑term IP development. This comprehensive approach mirrors a broader industry trend toward modular publishing, where developers can pick and choose services—be it marketing assistance, console porting, or funding—based on their unique requirements. Luke Keighran, founder of Silver Lining Interactive, recently remarked that "the old school publishing model is dead," underscoring the shift toward more customizable partnerships. Xue reiterated that while modularity is possible, the studio believes many emotionally ambitious projects benefit from an integrated partnership.
By staying involved across creative development, production, positioning, marketing, community building, and platform strategy, Thatgamepublisher aims to protect the emotional core of each game and help creators bring their vision all the way to players. In summary, Thatgamepublisher is built on the belief that games can forge deep emotional connections and bring out the best in people.
This conviction has guided Thatgamecompany’s own portfolio—from Flow and Flower to Journey and Sky—and now extends to a broader community of creators. By offering flexible, full‑service support and leveraging its experience running Sky: Children of the Light—an emotional live‑service title with over 300 million downloads and seven years of global operation—the studio hopes to help indie developers scale their heartfelt experiences without compromising their artistic integrity.