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 independent studios that, after scoring a breakout title, choose to leverage their newfound resources to help other indie developers bring their visions to market. Recent examples include Innersloth’s Outersloth, which backed games like Clickolding and The Horror at Highrook, Kinetic Games’ Kinetic Publishing with titles such as Precognition, Pocketpair’s Pocketpair Publishing, and Landfall Games’ Evil Landfall label. The trend reflects a broader shift in the industry where creators who have navigated the challenges of small‑budget development now have the capital and distribution insight to act as financiers and mentors.
Jenova Chen, co‑founder of Thatgamecompany, explains the logic behind the decision: "When an indie game succeeds on a shoestring budget, the studio suddenly finds itself with excess cash. Yet, the team often prefers to stay lean rather than balloon into a large corporation. The natural question becomes—how do we put that money to good use?
The answer is to invest in other indie projects that we understand and care about. That’s why many independent studios are stepping into publishing." The financial reality was starkly different when Journey launched in 2012. Chen has recounted that the development of Journey nearly drove the studio to bankruptcy, resulting in a wave of layoffs. In contrast, Sky: Children of the Light, released in 2019, has become a global phenomenon, especially in the Chinese market, and even inspired a feature‑film adaptation.
The revenue generated by Sky now gives Thatgamecompany the flexibility to allocate funds toward what Chen describes as "emotionally ambitious" games—titles that aim to evoke deep, lasting feelings in players. Chen also notes a transformation in how games reach audiences.
In the era of Journey, distribution channels were largely controlled by platform holders like PlayStation. Today, distribution is democratized: players themselves act as influencers, sharing experiences across social media and streaming platforms. "A successful indie title can now have millions of players who become its most powerful distribution engine," Chen says. "When you have an audience that loves a particular style of game, they actively seek out similar experiences, giving indie studios a reach that rivals traditional media outlets." Another distinctive advantage for Thatgamecompany is its demographic reach.
Roughly 70 percent of Sky’s player base is female, giving the studio a uniquely balanced audience compared with many other game companies. Chen believes this gender‑balanced community can help promote games that appeal to both men and women, especially those that attract newcomers to gaming. According to a press release, Thatgamepublisher has already signed a handful of projects, though details remain under wraps. Chen articulated the publisher’s mission: "When we first started making games, many questioned whether interactive experiences could move people as profoundly as film, literature, or music.
Over the years, we have seen games forge lifelong friendships, heal personal struggles, reconnect families, 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, 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 effort, emphasized that the label is looking for titles that "move people through play." He stressed that genre, platform, or team size are not primary criteria. "We are open to any team, at any stage of development, even prototypes, as long as the game strives for meaningful emotional territory and uses interactivity to reach that goal," Xue explained. "'Emotional' can be joyful, chaotic, funny, or even bittersweet.
The key question is: will the experience linger after the screen goes dark? If the answer is yes, we want to talk." While many indie publishers focus on sub‑million‑dollar projects, Thatgamepublisher is willing to consider larger budgets, including AA‑level funding. Xue said the studio’s flexibility allows them to partner with solo creators who possess immense creativity as well as larger teams that require more substantial financial backing.
The specifics of each publishing deal—such as revenue share and recoup terms—will be tailored to the individual project's needs, reflecting the company's developer‑first philosophy. Thatgamepublisher will operate as a full‑service publisher, offering not only capital but also production planning, platform strategy, marketing, community management, and long‑term IP development.
This comprehensive approach contrasts with some indie publishers that provide only funding. The industry is moving toward modular publishing models, where developers can pick and choose services, but 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 these games. By being involved across those areas, we can protect the emotional core of the game and help the team carry that vision all the way to players," he said.
The underlying philosophy driving Thatgamepublisher is the belief that games can forge shared emotional experiences and bring out the best in people. This conviction has guided Thatgamecompany’s own portfolio—from the meditative flow of Flow to the tender narrative of Journey and the communal wonder of Sky.
Chen and Xue argue that the next wave of creators will continue to push the emotional boundaries of the medium, and the publisher aims to provide the resources, infrastructure, and supportive environment needed to nurture those ideas. Drawing on seven years of operating Sky as a live‑service title with over 300 million downloads, Thatgamecompany has learned how to scale emotionally resonant experiences without diluting their impact.
Xue summed up the publisher’s vision: "By understanding each game's emotional truth, building from its 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."