Thatgamecompany, the acclaimed creator behind titles such as Flow, Flower, Journey, and the widely celebrated Sky: Children of the Light, has taken a significant step beyond pure development by establishing its own publishing division, Thatgamepublisher. This move mirrors a growing pattern in the indie ecosystem where studios that have scored a breakout hit use their newfound resources to nurture other independent projects.
Recent examples include Innersloth, the minds behind 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 is already handling titles such as Precognition from Sam Barlow; Pocketpair, the team behind Palworld, which introduced Pocketpair Publishing; and Landfall Games, the creators of Peak, which now operate under the Evil Landfall label. The trend reflects a broader shift: successful indie developers often find themselves with surplus capital after a hit, but they prefer to stay small and focused rather than balloon into a large corporate entity. As Jenova Chen, co‑founder of Thatgamecompany, explained, “When an indie game takes off, the cash flow can be massive, yet the studio’s DNA is still that of a tight‑knit, creative team. Instead of hiring hundreds of staff, we look for ways to reinvest the money in areas we understand best—other indie games.” Thatgamecompany’s own journey underscores the importance of this strategy.
The studio’s 2012 release, Journey, was a critical darling but nearly drove the company to insolvency, forcing a mass layoff. In contrast, Sky: Children of the Light, launched in 2019, has become a global phenomenon, especially in the Chinese market, and even inspired a feature‑film adaptation. The revenue generated from Sky now enables Thatgamecompany to fund what it calls "emotionally ambitious" projects, a phrase that captures its core philosophy: games should move players on a level comparable to film, literature, or music.
Chen also points out a fundamental change in how games reach audiences. In the early 2010s, distribution channels were dominated by platform holders such as PlayStation. Today, the distribution network is effectively owned by the players themselves, who act as influencers and community builders. A successful indie title can amass millions of dedicated fans who become organic promoters, often eclipsing traditional media outlets like GameSpot or IGN.
This democratization of distribution gives indie studios a powerful lever to launch their own publishing arms. Another distinctive advantage Thatgamecompany brings to the table is its demographic reach. According to Chen, roughly 70 % of Sky’s player base is female, giving the studio a unique gender balance that many other developers lack. This broad appeal means that a game highlighted by Thatgamepublisher can potentially attract both male and female audiences, including many newcomers to gaming who are looking for experiences that resonate emotionally.
While the publisher has already signed a few projects, details remain under wraps. In its official announcement, Chen articulated the publisher’s mission: "When we first began making games, many questioned whether interactive experiences could touch people as deeply as other art forms. Over the years, we’ve seen games forge lifelong friendships, heal personal struggles, reconnect loved ones, and restore hope. Those moments convinced us that games can profoundly affect lives.
Thatgamepublisher exists to help creators worldwide explore new emotional frontiers and bring those visions to life." SJ Xue, Thatgamecompany’s vice‑president of growth and corporate development and the leader of the publishing initiative, elaborated on the type of projects the studio seeks. He emphasized that genre, platform, or team size are secondary to the emotional impact a game can deliver.
"We’re looking for titles that move people through play," Xue said. "Whether it’s joy, chaos, humor, or quiet reflection, the key question is: will this stay with someone after the screen goes dark?
If the answer is yes, we want to talk." Unlike many indie publishers that limit themselves to sub‑million‑dollar budgets, Thatgamepublisher is prepared to back larger, AA‑scale endeavors. Xue noted that the studio is flexible about funding structures and will tailor terms—such as revenue share and recoupment—to the specific needs of each project.
"As developers ourselves, we understand the importance of fair, transparent, and developer‑friendly partnerships," he explained. "Our goal is to give teams the support they need to realize the strongest version of their game." The publishing model Thatgamecompany is adopting is comprehensive. It offers not only capital but also production planning, platform strategy, marketing, community management, and long‑term IP development.
This full‑service approach contrasts with other indie publishers like Outersloth or Evil Landfall, which often focus solely on funding. Industry observers, such as Luke Keighran of Silver Lining Interactive, have noted that the old‑school, one‑size‑fits‑all publishing model is dying, giving way to modular services that developers can pick and choose. Xue confirmed that Thatgamepublisher can operate in a similarly modular fashion, providing bespoke packages that align with a developer’s particular challenges—whether that’s marketing support, console porting assistance, or ongoing post‑launch services. For projects with a strong emotional core, Xue believes an integrated partnership yields the greatest value.
He explained that creative development, production, positioning, marketing, community engagement, and platform strategy are often interwoven, especially for games that aim to evoke deep feelings. By staying involved across these domains, Thatgamepublisher can protect the emotional essence of a title while helping it reach a wider audience. The overarching philosophy behind the venture is simple yet powerful: games can connect people through shared emotional experiences and bring out the best in humanity. This belief has guided Thatgamecompany’s own portfolio—from the meditative flow of Flow, the delicate bloom of Flower, the pilgrimage of Journey, to the communal sky‑bound adventure of Sky.
The studio now wants to amplify that impact by supporting other creators who are pushing the boundaries of what interactive media can feel like. Chen summed up the vision: "We learned from our own work that emotionally ambitious games often need a different playbook.
The heart of a project may not be obvious at the outset; it can emerge through prototypes, iteration, quiet discoveries, and the right creative conversations. Our role is to protect that process, giving developers room, guidance, and alignment to uncover the strongest version of their work.
With our experience running Sky as a live‑service title that has amassed over 300 million downloads and sustained global operations for seven years, we understand how to scale heartfelt experiences without diluting their meaning. By listening to each game’s emotional truth, building on its community, and allowing genuine resonance to drive growth, we aim to help every project reach farther while staying true to its core feeling."