Thatgamecompany, the acclaimed developer behind titles such as Flow, Flower, Journey, and the widely praised Sky: Children of the Light, has announced the creation of a new publishing division called Thatgamepublisher. This move follows a growing pattern in the independent gaming sector where studios that have scored a breakout hit expand into publishing or funding to nurture other indie creations. Recent examples include Innersloth, the creators of Among Us, which started Outersloth in 2024 and has since backed games like Clickolding and The Horror at Highrook; Kinetic Games, known for Phasmophobia, which launched Kinetic Publishing and now supports projects such as Precognition from Sam Barlow; Pocketpair, the team behind Palworld, which introduced Pocketpair Publishing; and Landfall Games, the studio behind Peak, which formed the Evil Landfall label.
The trend reflects a desire among successful indie teams to reinvest surplus earnings back into the ecosystem that helped them thrive. "Successful indie games are typically built on very tight budgets," explains Jenova Chen, co‑founder of Thatgamecompany. "When one of those games becomes a hit, you suddenly have a cash surplus.
Yet we’re a small, tightly knit team and we don’t want to balloon into a massive corporation overnight. The logical place to put that extra capital is into projects we understand and care about—other indie games. That’s why many of us are stepping into publishing." The financial reality was stark when Journey launched in 2012. Chen has recounted to GamesIndustry.biz that the development of Journey nearly drove the studio to bankruptcy and resulted in a wave of layoffs.
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 profits from Sky now give Thatgamecompany the means to fund what it describes as "emotionally ambitious" games. Chen also notes a shift in distribution dynamics. In the era of Journey, platforms like PlayStation controlled the majority of game distribution.
Today, however, distribution power rests largely with the players themselves, who act as influencers and community ambassadors. A successful indie title can amass millions of dedicated fans who become its most effective marketing channel, often surpassing traditional outlets such as GameSpot, IGN, or even Steam.
Another distinctive advantage for Thatgamecompany is its audience composition. Chen points out that roughly 70% of Sky's player base is female, giving the studio a broader gender reach than many competitors. "When we highlight a game that appeals to both men and women, we tap into a unique overlap, especially because many of our players are newcomers to gaming," he says.
Although specific titles have not yet been disclosed, Chen confirmed that Thatgamepublisher has already signed a "couple" of projects. The publisher's mission statement, released alongside the announcement, reads: "When we first began making games, many questioned whether interactive experiences could move players as deeply as film, literature, or music.
Over the years, games have proven their capacity to forge lifelong friendships, heal personal struggles, reconnect loved ones, and restore 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 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 leader of 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 will not be limiting factors.
"We are open to any team, at any development stage, even prototypes, as long as the game strives for meaningful emotional territory and uses interactivity to reach it," Xue explained. "Emotional" can encompass a wide spectrum—joy, chaos, humor, melancholy—yet the core question remains: "Will this stay with someone after the screen goes dark?" If a developer can answer affirmatively, Thatgamepublisher wants to start a conversation. While many indie publishers focus on sub‑million‑dollar projects, Thatgamepublisher is prepared to back larger, AA‑scale endeavors. Xue clarified that the publisher's funding flexibility allows it to support solo creators with boundless imagination as well as larger teams requiring more substantial budgets.
The financial terms, including revenue share and recoupment percentages, will be tailored to each project's specific needs. "As developers ourselves, we understand the importance of fair, transparent, and developer‑friendly partnerships," he said.
Unlike some peers that operate on a funding‑only model, Thatgamepublisher will function as a full‑service publisher, offering not just capital but also production planning, platform strategy, marketing, community management, and long‑term IP development. This comprehensive approach contrasts with the modular models favored by studios like Outersloth and Evil Landfall, where developers pick and choose services.
Luke Keighran of Silver Lining Interactive has remarked that the "old school publishing model is dead," and modern developers prefer the flexibility to select only the assistance they need. Xue reiterated that Thatgamepublisher can adapt its involvement based on a project's requirements, providing modular options for funding, marketing, or other support. However, for emotionally driven titles, he believes a more integrated partnership yields the best results.
"Creative development, production, positioning, marketing, community, and platform strategy are often deeply interconnected for these games. Being involved across those areas lets us protect the emotional core and guide the team from concept to player." The publisher's philosophy rests on the belief that games can forge shared emotional experiences and bring out the best in people. Chen noted that this conviction has shaped every title Thatgamecompany has produced, from Flow and Flower to Journey and Sky. He added that the studio's experience running Sky as a live‑service emotional experience—with over 300 million downloads and seven years of global operation—has taught them how to scale heartfelt experiences without diluting their impact.
In summary, Thatgamepublisher aims to identify creators who are pushing the emotional boundaries of interactive media, provide them with the resources and expertise to refine their visions, and help those games reach audiences worldwide while staying true to their emotional heart. The initiative signals a new chapter for Thatgamecompany, transitioning from a single‑studio powerhouse to a supportive hub for the next generation of emotionally resonant games.