Thatgamecompany, the creative force behind acclaimed titles such as Flow, Flower, Journey, and the recent hit Sky: Children of the Light, has announced the formation of a new publishing division named Thatgamepublisher. This move aligns with a growing pattern in the indie sector where studios that have scored a breakout success leverage their newfound resources to become publishers or investors for other independent developers.
Recent 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 projects such as Precognition by Sam Barlow; Pocketpair, the studio behind Palworld, which introduced Pocketpair Publishing; and Landfall Games, the minds behind Peak, which formed the Evil Landfall label. The trend demonstrates a shift toward indie studios taking a more active role in shaping the ecosystem beyond their own releases. Jenova Chen, co‑founder of Thatgamecompany, explained the rationale behind this evolution: "When an indie title that was built on a shoestring budget suddenly becomes a blockbuster, the studio often ends up with a surplus of cash but no clear path for reinvestment.
We don’t want to balloon into a massive corporation; instead, we prefer to channel that capital into areas we understand deeply—namely, other indie games. That’s why many small studios are now stepping into publishing." The financial picture was dramatically different when Journey launched in 2012. Chen recalled to GamesIndustry.biz that the development of Journey pushed the studio to the brink of bankruptcy and forced 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 success of Sky provides Thatgamecompany with the means to fund what Chen describes as "emotionally ambitious" projects, extending the studio’s legacy of creating experiences that resonate on a personal level. Chen also highlighted a shift in distribution dynamics. In the early 2010s, platforms like PlayStation controlled the primary channels for reaching players.
Today, the distribution power lies with the community itself—streamers, social media influencers, and word‑of‑mouth networks. "A hit indie game can now reach millions of players directly through their own fans, which becomes the strongest promotional engine," he noted. This democratization of distribution gives indie publishers a unique advantage: they can harness the enthusiasm of an engaged audience to amplify new releases.
Another distinguishing factor for Thatgamecompany is its demographic reach. Chen pointed out that roughly 70 % of Sky’s player base is female, a statistic that surpasses most other developers.
"When we showcase a title that appeals equally to men and women, we tap into a rare overlap of audiences, many of whom are newcomers to gaming," he said. This gender‑balanced community offers an attractive platform for developers seeking diverse exposure.
Although the roster of games signed to Thatgamepublisher remains under wraps, Chen shared the publisher’s philosophical foundation in a press release: "When we first started, many doubted that interactive media could move people as profoundly as film, literature, or music. Over the years, we have witnessed games forging lifelong friendships, healing personal struggles, reconnecting families, and restoring hope. Those moments convinced us that games can touch lives in deep, meaningful ways. Thatgamepublisher exists to support creators worldwide who are exploring new emotional frontiers in the medium." SJ Xue, Thatgamecompany’s vice‑president of growth and corporate development and the lead for the publishing initiative, elaborated on the type of projects the studio is hunting.
He emphasized that the publisher is not constrained by genre, platform, or scale: "We are open to any team, at any development stage, even prototypes. What matters is whether the game strives for a meaningful emotional experience that lingers after the console is turned off." Xue clarified that "emotional" can encompass a wide spectrum—joy, chaos, humor, melancholy—so long as the experience leaves a lasting impression.
This open‑ended criterion differentiates Thatgamepublisher from many other indie publishers that typically focus on sub‑million‑dollar budgets. While most indie funding arms stay within modest financial limits, Thatgamepublisher is prepared to back larger, AA‑level projects if they align with its mission.
The terms of each publishing agreement will be customized to the needs of the developer. Xue explained that, as former developers themselves, the team understands the importance of transparent, fair deals that give creators the support they need without compromising artistic integrity. The publisher intends to act as a full‑service partner, offering not only capital but also production planning, platform strategy, marketing, community management, and long‑term IP development. This contrasts with models like Outersloth or Evil Landfall, which primarily provide funding and let developers handle other aspects independently.
Industry observers note that the classic, monolithic publishing model is fading. Luke Keighran of Silver Lining Interactive recently told GamesIndustry.biz that developers now prefer modular services—selecting only the pieces they require, whether that be marketing assistance, console porting, or funding.
Xue confirmed that Thatgamepublisher can accommodate such modular arrangements, tailoring support to each project's specific demands. Nevertheless, Xue believes that emotionally ambitious games often benefit from a more integrated partnership. By staying involved across creative development, production, positioning, marketing, community building, and platform strategy, the publisher can protect the game's emotional core and guide it from concept to player.
"Our goal is to meet each project where it is and shape the partnership around what will be most useful to the developer," he said. When asked why developers should consider Thatgamepublisher, Xue pointed back to the studio’s founding belief: games have the power to connect people through shared emotional experiences and bring out the best in humanity. This philosophy has guided every Thatgamecompany title—from the meditative flow of Flow, through the delicate bloom of Flower, the pilgrimage of Journey, to the communal wonder of Sky. The company now seeks to amplify that impact by supporting other creators who are pushing the emotional boundaries of interactive media.
Xue added that emotionally driven projects often require a different playbook. The heart of a game may not be evident at the outset; it can emerge through prototyping, iterative design, quiet discoveries, and collaborative dialogue. Thatgamepublisher aims to safeguard that process, providing developers with the space, guidance, and alignment needed to uncover the strongest expression of their vision. Drawing on its experience running Sky: Children of the Light as a live‑service title with over 300 million downloads and seven years of global operation, Thatgamepublisher claims to understand how to scale heartfelt experiences without diluting their essence.
By grounding each project in its emotional truth, building community around it, and allowing genuine resonance to drive growth, the publisher hopes to help every game reach a broader audience while staying true to its core feeling. In summary, Thatgamecompany’s new publishing arm, Thatgamepublisher, is set to become a champion for indie developers who aim to create games that move players on an emotional level.
With flexible funding, full‑service support, and a clear focus on the human impact of interactive experiences, the initiative reflects a broader industry shift toward creator‑centric publishing models that prioritize artistic ambition as much as commercial success.