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 indie developers who, after achieving a breakout success, expand into publishing or funding to nurture other independent projects. In recent years, Innersloth, the creators of Among Us, launched Outersloth in 2024 to back games like Clickolding and The Horror at Highrook. Earlier this year, Kinetic Games, known for Phasmophobia, introduced Kinetic Publishing, which already includes titles such as Precognition from Sam Barlow’s Immortality team.
Pocketpair, the studio behind Palworld, has started Pocketpair Publishing, while Landfall Games, the minds behind Peak, rolled out the Evil Landfall label. The trend shows no signs of slowing.
"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." When Journey launched in 2012, Thatgamecompany was far from flush with cash. Chen has recounted to GamesIndustry.biz that the development of Journey almost drove the studio to bankruptcy and resulted in a massive staff layoff.
The situation is dramatically different today. 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 enables Thatgamecompany to allocate funds toward what it calls "emotionally ambitious games"—projects that aim to move players on a deeper, more personal level. Chen also notes a shift in how games reach audiences. In the early 2010s, distribution channels were dominated by platform holders such as PlayStation.
"Today, the distribution network is owned by the players, who are influencers," he says. A successful indie title can amass millions of players who become its most powerful promoters, often out‑reaching traditional media outlets like GameSpot, IGN, or even Steam itself. "If you have an audience that loves a certain style of game, they will actively seek out similar experiences," Chen adds.
Another distinctive asset for Thatgamecompany is its demographic reach. Roughly 70 % of Sky’s player base is female, giving the studio a uniquely balanced audience compared to many other developers. "When we feature a game that appeals to both men and women, we have a rare overlap because many of our players have never played games before," Chen explains.
Thatgamepublisher has already signed a few 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 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 label will not limit the publisher’s 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 said.
According to Xue, emotional impact can take many forms—joy, chaos, humor—but the core question remains: "Will this stay with someone after the screen goes dark?" If a developer can answer affirmatively, Thatgamepublisher wants to start a conversation. While many indie publishers focus on sub‑million‑dollar budgets, Thatgamepublisher is willing to support larger endeavors. "We are quite flexible when it comes to funding and project scale," Xue noted. "We are open to working with everyone from solo developers with immense creativity to larger teams with AA‑level budgets." The terms of each publishing deal will be tailored to the project's needs.
Xue stressed that, as former developers themselves, the team understands the importance of fair, transparent, and developer‑friendly partnerships that still provide the resources needed to realize a game's full 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 modular, funding‑only model. Luke Keighran, founder of Silver Lining Interactive, recently remarked that "the old school publishing model is dead" and that modern developers prefer to pick and choose services—whether it’s marketing, console porting assistance, or pure funding.
Xue reiterated that Thatgamepublisher can adopt modular arrangements when appropriate, but believes that emotionally ambitious projects often benefit from an integrated partnership. "Creative development, production, positioning, marketing, community, and platform strategy are often deeply interconnected for these games. 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," he explained. In summary, the guiding belief behind Thatgamepublisher is that games have the power to connect people through shared emotional experiences and bring out the best in humanity.
This philosophy has shaped every title Thatgamecompany has released—from Flow and Flower to Journey and Sky. The studio now hopes to amplify that impact by supporting other creators worldwide, offering them the resources, expertise, and compassionate partnership needed to turn emotionally resonant ideas into games that linger in players’ hearts long after the final frame fades.