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 follows a growing pattern among successful indie developers who, after scoring a breakout hit, leverage their newfound resources to back other independent projects. In recent years, studios like Innersloth (the creators of Among Us) launched Outersloth in 2024, supporting games such as Clickolding and The Horror at Highrook.
Earlier this year, Kinetic Games, known for Phasmophobia, started Kinetic Publishing, adding titles like Precognition from Sam Barlow’s Immortality team to its roster. Pocketpair, the studio behind Palworld, introduced Pocketpair Publishing, while Landfall Games, the team behind Peak, rolled out the Evil Landfall label. The trend illustrates how indie studios are evolving from pure developers into hybrid creator‑publisher entities.
"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 bankrupted the studio and forced a mass layoff. The situation has changed dramatically thanks to Sky: Children of the Light, released in 2019. The game has performed exceptionally well worldwide—especially in China—and even inspired a feature film.
The revenue generated by Sky now gives Thatgamecompany the financial breathing room to fund what it calls "emotionally ambitious games" at budgets that can reach AA levels. Chen also notes a shift in how games reach audiences. In the early 2010s, distribution channels were dominated by platform owners like Sony. "Today, the distribution network is owned by the players, who are influencers," he says.
A popular indie title can amass millions of players who become its most effective promoters, often eclipsing traditional media outlets such as GameSpot, IGN, or even Steam. This democratization of distribution empowers indie studios to become publishers, as they already possess a ready‑made audience eager for similar experiences. Another distinctive advantage for Thatgamecompany is its predominantly female player base.
Chen points out that roughly 70 % of Sky’s players are women, giving the studio a unique demographic reach that many other developers lack. "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 explains.
Thatgamepublisher has already signed a handful of projects, though details remain under wraps. In a press release, Chen articulated the publisher’s philosophy: "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 head 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 a game’s capacity to linger in a player's mind after the console is turned off. "'Emotional' can mean many things—joyful, chaotic, even funny.
The through line is always, will this stay with someone after the screen goes dark? If a game is chasing that, we want to have the conversation." While many indie publishers limit themselves to sub‑million‑dollar budgets, Thatgamepublisher is willing to back larger endeavors. Xue explained that the publisher can support solo creators with groundbreaking ideas as well as larger teams seeking AA‑level funding. Deal terms, including revenue splits and recoupment percentages, will be tailored to each project's specific needs.
"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," Xue said. Thatgamepublisher will operate as a full‑service publisher, offering financing, production planning, platform strategy, marketing, community management, and long‑term IP development.
This contrasts with other indie publishers like Outersloth or Evil Landfall, which often adopt a funding‑only or modular approach. Luke Keighran, founder of Silver Lining Interactive, has observed that the traditional publishing model is dying, with developers now able to cherry‑pick services—whether it be marketing, console porting, or funding—according to their needs.
Xue reiterated that Thatgamepublisher can provide modular arrangements, but for projects with an emotional core, a more integrated partnership is often beneficial. He explained that creative development, production, positioning, marketing, community engagement, and platform strategy are tightly interwoven for emotionally ambitious games. By staying involved across these domains, the publisher can protect the game's emotional essence and help the team deliver that vision to players.
Ultimately, the goal is to meet each project where it stands and shape the collaboration around what will be most useful to the developer. Xue summed up the publisher’s mission: "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.
We know this path is bigger than one studio. Around the world, creators are exploring new ways to make games feel, and we want to help those ideas reach players.
By understanding the emotional truth of each game, building from its community, and allowing genuine resonance to create scale over time, we aim to help every project reach farther while staying true to the feeling at its heart."