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 achieving a breakout title, branch out into publishing or funding to uplift other independent projects. Examples include Innersloth, the creators 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 titles such as Precognition by Sam Barlow; Pocketpair, the studio behind Palworld, which introduced Pocketpair Publishing; and Landfall Games, the team behind Peak, which formed the Evil Landfall label.
The trend reflects a desire among small studios to reinvest surplus earnings into the broader indie ecosystem. “Successful indie games are usually built on very tight budgets,” explains Jenova Chen, co‑founder of Thatgamecompany. “When a game takes off, you suddenly have extra cash, but you don’t want to explode into a massive corporation. You prefer to invest that money in something you understand—other indie games.
That’s why many indie studios are becoming publishers.” Thatgamecompany’s own history illustrates the stakes. When Journey launched in 2012, the project nearly bankrupted the studio and resulted in a wave of layoffs, as Chen recounted to GamesIndustry.biz earlier this year.
The situation is dramatically different now. Sky: Children of the Light, released in 2019, has become a global phenomenon, especially in China, and even inspired a feature‑film adaptation.
The revenue generated by Sky enables Thatgamecompany to allocate profits toward what it describes as “emotionally ambitious” games. Chen also notes a shift in how games reach audiences. In the era of Journey, distribution channels were dominated by platform holders like PlayStation. Today, “the distribution network belongs to the players, who are also influencers.” A successful indie title can amass millions of players who act as organic promoters, often surpassing the reach of traditional media outlets such as GameSpot, IGN, or even Steam.
This democratization of distribution gives indie studios a stronger incentive to become publishers, as they can leverage their own community to amplify new releases. Another distinctive advantage for Thatgamecompany is its demographic reach. Roughly 70 % of Sky’s player base is female, giving the studio a larger female audience than most game companies worldwide. Chen believes this creates a unique overlap: “If we highlight a game that appeals to both men and women, many of our players may be experiencing games for the first time, which expands the potential impact.” Thatgamepublisher has already signed a handful of projects, though details remain under wraps.
In a press release, Chen articulated the publisher’s mission: “When we first began making games, many doubted 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 profoundly. Thatgamepublisher exists because we believe countless creators worldwide are exploring new emotional frontiers, and we want to help bring those visions to life.” SJ Xue, Thatgamecompany’s vice‑president of growth and corporate development and the leader 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 primary criteria.
“We are open to any team, any stage of development, and even prototypes. What matters is whether the game reaches for meaningful emotional territory and uses interactivity to carry players there,” Xue said. He elaborated on the definition of “emotional,” noting it can be joyful, chaotic, or humorous.
“The key question is: will this stay with someone after the screen goes dark? If a game aspires to that, we want to talk.” While many indie publishers focus on sub‑million‑dollar budgets, Thatgamepublisher is prepared to back larger endeavors. Xue explained, “We are flexible regarding funding and project scale. Whether it’s a solo developer with a brilliant concept or a larger team with AA‑level resources, we want to support them.” The specifics of each publishing deal—such as revenue share—will be tailored to the individual project’s needs.
“As developers ourselves, we understand the importance of fair, transparent, and developer‑friendly partnerships,” he added. Thatgamepublisher positions itself 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 and Evil Landfall, which primarily provide funding.
The industry is moving toward modular publishing models, where developers can pick and choose services. Luke Keighran of Silver Lining Interactive observed that “the old school publishing model is dead; today developers select the support they need, whether it’s marketing, console conversion, funding, or everything.” Xue confirmed that Thatgamepublisher can adapt its involvement, offering modular arrangements for funding, marketing, or other specific assistance. Nevertheless, Xue believes that emotionally driven projects often benefit from an integrated partnership. “Creative development, production, positioning, marketing, community, and platform strategy are deeply interconnected for ambitious games.
Being involved across those areas lets us protect the emotional core of the game and help the team bring that vision to players.” The overarching philosophy behind the publisher is the belief that games can forge shared emotional experiences and bring out the best in people. Xue highlighted that this conviction has guided Thatgamecompany’s own creations—from Flow and Flower to Journey and Sky.
“We have learned that emotionally ambitious games need a different playbook. Their heart may not be obvious at the outset; it can emerge through prototypes, iteration, quiet discoveries, and the right creative conversations. Our role is to safeguard that process, giving developers the space, guidance, and alignment to uncover the strongest version of their work.” Drawing on the experience of running Sky: Children of the Light as a live‑service title with over 300 million downloads and seven years of global operation, Thatgamepublisher aims to help other studios scale without diluting the feeling at the heart of their games. By understanding each game’s emotional truth, building around its community, and allowing genuine resonance to drive growth, the publisher hopes to enable projects to reach broader audiences while staying true to their core emotional impact.