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 achieving a breakout success, branch out into publishing or funding to uplift other independent developers. Recent examples include Innersloth, the creators of Among Us, which started Outersloth in 2024 to back games like Clickolding and The Horror at Highrook; Kinetic Games, known for Phasmophobia, which launched Kinetic Publishing and now supports projects such as Precognition from Sam Barlow; Pocketpair, the studio behind Palworld, which has opened Pocketpair Publishing; and Landfall Games, the team behind Peak, which introduced the Evil Landfall label. The trend reflects a broader shift in the industry where creators with capital and expertise seek to nurture the next wave of innovative experiences.
"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 of people 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 recounted that the project's development nearly pushed the studio to bankruptcy, resulting in a massive layoff of staff.
The situation contrasts sharply with the current landscape. Sky: Children of the Light, released in 2019, has become a global phenomenon, especially in China, and even inspired a feature film. The game's sustained revenue stream now gives Thatgamecompany the resources to back "emotionally ambitious" games, a phrase the studio uses to describe projects that aim to touch players on a deeper, more personal level.
Chen also notes a shift in how games reach audiences. In the early 2010s, distribution was largely controlled by platform holders like Sony.
"Today, the distribution network is owned by the players, who are influencers," he says. A successful indie title can amass millions of players who act as organic promoters, often wielding more sway than traditional media outlets such as GameSpot, IGN, or even Steam.
This democratization of distribution means indie studios can leverage their own communities to amplify the visibility of the games they publish. Another distinctive advantage for Thatgamecompany is its demographic reach. Chen points out that roughly 70 % of Sky's player base is female, giving the studio a uniquely balanced audience compared to many other developers. "If we promote or feature a game that would be appealing to men and women equally, our audience is going to have a very unique overlap, because there are many of our players who have never played games before," he explains.
Thatgamepublisher has already signed a handful of projects, though details remain under wraps. In a press release, Chen outlined 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, emphasizes that the label is looking for titles that "move people through play." He adds that the publisher will not be constrained by genre, platform, or project size. "The typical genre or platform restrictions would not apply to us," Xue says.
"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 explains that "emotional" can encompass a wide spectrum—from joy and chaos to humor—so long as the experience lingers after the console is turned off. This focus on lasting impact guides the publisher's selection criteria.
While many indie publishers limit themselves to sub‑million‑dollar budgets, Thatgamepublisher is prepared to back larger endeavors. "We are quite flexible when it comes to funding and project scale," Xue notes. "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 agreement will be tailored to the individual project's needs, including revenue share and recoupment structures.
Xue stresses that, as developers themselves, the team understands the importance of fair, transparent, and developer‑friendly partnerships that provide the necessary support to realize a game's full potential. Thatgamepublisher is positioning itself as a full‑service publisher, offering not only capital but also assistance with production planning, platform strategy, marketing, community management, and long‑term intellectual‑property development.
This contrasts with some indie publishers that adopt a modular, funding‑only approach. Luke Keighran, founder of Silver Lining Interactive, has observed that "the old school publishing model is dead," and that modern developers prefer to pick and choose the services they need—whether that's marketing, console porting, or full‑scale production support.
Xue confirms that Thatgamepublisher can provide modular arrangements, but he believes that emotionally ambitious projects often benefit from a more integrated partnership. By staying involved across creative development, production, positioning, and community engagement, the publisher aims to protect the game's emotional core and help the team carry that vision from concept to player. In summary, Thatgamepublisher seeks to empower developers who aspire to craft games that resonate on a personal level. The studio's own history—from the experimental minimalism of Flow to the expansive, community‑driven world of Sky—demonstrates a commitment to exploring the emotional possibilities of interactive media.
By combining that creative perspective with the infrastructure of a full‑service publisher, Thatgamecompany hopes to amplify the reach of indie titles while preserving the heartfelt experiences that define their work.