Thatgamecompany, the acclaimed developer behind titles such as Flow, Flower, Journey, and the recent hit Sky: Children of the Light, has announced the creation of a new publishing division named Thatgamepublisher. This move follows a growing pattern among successful indie studios that, after achieving a breakout success, expand into publishing or funding roles to uplift other independent creators.
In recent years, studios like Innersloth (the team behind Among Us) introduced Outersloth in 2024, supporting games such as Clickolding and The Horror at Highrook. Earlier this year, Kinetic Games—known for Phasmophobia—launched Kinetic Publishing, adding titles like Precognition, the newest project from Sam Barlow’s Immortality.
Pocketpair, the developers of Palworld, have begun Pocketpair Publishing, while Landfall Games, creators of Peak, rolled out the Evil Landfall label. The trend underscores a shift in the indie ecosystem, where financial windfalls are reinvested into the community that nurtured them.
"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‑person 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 stark when Journey launched in 2012. Chen has recounted to GamesIndustry.biz that the project's development nearly bankrupted the studio and resulted in a mass layoff.
In contrast, Sky: Children of the Light, released in 2019, has generated massive revenue—especially in the Chinese market—and even inspired a feature film. The success of Sky now enables Thatgamecompany to channel profits into what it describes as "emotionally ambitious" games, a term that captures experiences designed to resonate deeply with players.
Chen also highlights how distribution has shifted. In the era of Journey, platforms like PlayStation controlled the primary channels for reaching gamers. Today, "the distribution network is owned by the players, who are influencers." A popular indie title can amass millions of fans who become organic promoters, often out‑reaching traditional media outlets such as GameSpot, IGN, or even Steam.
This democratized reach gives indie studios a compelling reason to become publishers themselves, leveraging their own communities to amplify new releases. Another distinctive asset for Thatgamecompany is its audience demographics. Chen notes that roughly 70 % of Sky’s player base is female, giving the studio a broader gender appeal than many of its peers. "If we promote a game that appeals equally to men and women, our audience provides a unique overlap, because many of our players have never played games before," he says.
This diverse fanbase can help launch titles that aim for universal emotional impact. While specific projects under Thatgamepublisher remain under wraps, the publisher has already signed a "couple" of games. In its launch statement, Chen articulated a philosophy that dates back to the studio’s early days: "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 searching for titles that "move people through play." He emphasized that genre, platform, or team size are not limiting factors.
"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 explained.
According to Xue, "emotional" can encompass joy, chaos, humor, or melancholy. The key question is whether the experience lingers after the console is turned off. "If a game is chasing that, we want to have the conversation," he added.
Where many indie publishers focus on sub‑million‑dollar budgets, Thatgamepublisher is prepared to back larger undertakings. "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 agreement 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 not just capital but also production planning, platform strategy, marketing, community management, and long‑term IP development. This full‑service approach distinguishes Thatgamepublisher from other indie publishers that often adopt a modular, funding‑only model. Luke Keighran, founder of Silver Lining Interactive, recently observed that "the old school publishing model is dead," noting that modern developers can pick and choose the services they require—whether that be marketing, console conversion assistance, or funding.
Xue echoed this sentiment, saying Thatgamepublisher can offer modular arrangements while also offering integrated partnerships for projects that benefit from a holistic approach. "For emotionally ambitious projects, creative development, production, positioning, marketing, community, and platform strategy are often deeply interconnected.
Being involved across those areas allows us to bring the most value, 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 mission is to meet each project where it stands and shape a partnership that maximizes the developer’s strengths.
Xue summed up the guiding belief: "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 concluded by describing the publisher’s role as a protector of the creative process: "Emotionally ambitious games often need a different playbook.
The heart of a project is not always easy to define at the beginning. It can emerge through prototypes, iteration, quiet discoveries, and the right creative conversations.
Our role is to help protect that process, giving developers the room, guidance, and alignment they need to discover the strongest version of their work." Drawing on the experience of running Sky: Children of the Light—a live‑service title with over 300 million downloads and seven years of global operation—Thatgamepublisher believes it can scale heartfelt experiences without diluting their impact. By understanding each game's emotional truth, nurturing its community, and allowing genuine resonance to build over time, the publisher aims to help indie projects reach broader audiences while staying true to the feelings at their core.