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 called Thatgamepublisher. This move follows a growing pattern among successful indie studios that, after scoring a breakout hit, expand into publishing or funding to nurture other independent developers. Recent examples include Innersloth’s Outersloth (launched in 2024), Kinetic Games’ Kinetic Publishing, Pocketpair’s Pocketpair Publishing, and Landfall Games’ Evil Landfall label, among many others.
"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 recalled that the project's development nearly bankrupted the studio 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 has given Thatgamecompany the capacity to channel profits into what it calls "emotionally ambitious games." Chen also points out a shift in distribution dynamics.
In Journey's era, console manufacturers such as Sony controlled the primary channels for reaching players. Today, "the distribution network is owned by the players, who are influencers." A popular indie title can now amass millions of dedicated fans who become its most effective marketing engine.
"You have an audience who love friendslop games, and they're looking for other friendslop games. You actually have more influence for distribution than GameSpot, than IGN, than Steam, right? So that's why I think today indie game studios are more likely to become publishers – they also have additional distribution reach," Chen adds. 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 for games that appeal to both men and women, especially for titles that attract newcomers to gaming. Thatgamepublisher has already signed a "couple" 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 seeking titles that "move people through play." He emphasized that genre, platform, or label will not limit their interest.
"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. He added that "emotional" can encompass joy, chaos, humor, or melancholy, but the core question remains: "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 focus on sub‑million‑dollar budgets, Thatgamepublisher is willing to back larger, AA‑level projects.
"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 deal will be tailored to the specific needs of the project. Xue noted that, as developers themselves, they understand the importance of fair, transparent, and developer‑friendly partnerships that provide the necessary support to realize a game's fullest potential. Thatgamepublisher will operate as a full‑service publisher, offering financing, production planning, platform and launch strategy, marketing, community management, and long‑term IP development.
This contrasts with some indie publishers that adopt a funding‑only model or a modular approach where developers pick and choose services. Luke Keighran, founder of Silver Lining Interactive, has observed that "the old school publishing model is dead" and that modern arrangements are more flexible, allowing studios to select only the assistance they require. Xue reiterated that Thatgamepublisher can adapt its involvement: "We can be flexible depending on what a developer and project needs, including more modular arrangements around areas such as funding, marketing, or other specific support. That being said, we believe the kinds of games we want to work with often benefit from a more integrated partnership.
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. Ultimately, we want to meet each project where it is and shape the partnership around what will be most useful to the developer." When asked why developers should consider signing with Thatgamepublisher, Xue pointed to the company's founding belief that games can forge deep emotional connections and bring out the best in people. He said, "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 continued, "We learned from our own work that 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 as an emotional live‑service title with over 300 million downloads and seven years of global operation, Xue explained how Thatgamepublisher intends to leverage that expertise.
"By understanding the emotional truth of each game, building from its players and 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."