Thatgamecompany, the creative force behind acclaimed titles such as Flow, Flower, Journey, and the recent hit Sky: Children of the Light, has announced the creation of a new publishing division called Thatgamepublisher. This move follows a growing pattern among successful indie developers who, after scoring a breakout hit, expand into publishing or funding to nurture other independent projects.
For example, Innersloth, the team behind the viral phenomenon Among Us, launched Outersloth in 2024 to support games like Clickolding and The Horror at Highrook. Earlier this year, Kinetic Games, known for Phasmophobia, introduced Kinetic Publishing, which now carries titles such as Precognition, the latest work from Sam Barlow of Immortality fame. Pocketpair, the creators of Palworld, have also opened Pocketpair Publishing, while Landfall Games, the studio behind Peak, started the Evil Landfall label. The trend reflects a broader shift in the indie ecosystem.
"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 nearly bankrupted the studio and forced a mass lay‑off. 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. Those profits now give Thatgamecompany the breathing room to fund what it calls "emotionally ambitious games." Chen also notes a fundamental change in how games reach players.
In the early 2010s, distribution was dominated by platform owners like Sony. "Today, the distribution network is owned by the players, who are influencers," he says. A successful indie title can amass millions of fans who become its most effective marketing channel. "You have an audience who love a certain style of game and they are looking for more of the same.
You actually have more influence for distribution than GameSpot, than IGN, than Steam, right? That's why I think today indie studios are more likely to become publishers – they also have additional distribution reach." Another differentiator for Thatgamecompany is its audience demographic. Roughly 70% of Sky's players are female, giving the studio a larger female reach than most game companies worldwide. "If we promote a game that appeals to both men and women, our audience has a unique overlap, because many of our players have never played games before," Chen adds.
Thatgamepublisher has already signed a few projects, though the titles remain under wraps. In the official press release, Chen articulated the publisher's mission: "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 firm is hunting for titles that "move people through play." He emphasized that genre, platform, or team size are irrelevant; what matters is whether a game can reach meaningful emotional territory and linger with players after the screen goes dark. "Emotional can mean joyful, chaotic, even funny.
The through line is always, will this stay with someone after the screen goes dark? If a game is chasing that, we want to have the conversation," Xue explained. While many indie publishers limit themselves to sub‑million‑dollar budgets, Thatgamepublisher is prepared 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 publishing deal terms will be tailored to each project's needs. Xue highlighted that, as developers themselves, they understand the importance of fair, transparent, and developer‑friendly partnerships that give teams the support required to realize the strongest version of their games. 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 provide only funding or adopt a modular approach.
Luke Keighran, founder of Silver Lining Interactive, told GamesIndustry.biz that "the old school publishing model is dead," and that developers now pick and choose the services they need—be it marketing, console conversion assistance, or funding. Xue reiterated that Thatgamepublisher can adapt its involvement: "We can be flexible depending on what a developer and project needs, including modular arrangements around 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." The overarching philosophy behind the venture is simple: games can forge deep emotional connections and bring out the best in people. Chen summed it up, "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." In Chen's words, the role of the publisher is to protect the delicate, often hidden, emotional heart of a project, giving developers the space, guidance, and resources needed to let that heart emerge through iteration and playtesting.
Drawing on their experience running Sky: Children of the Light—a live‑service title with over 300 million downloads and seven years of global operation—Thatgamecompany believes it can help emotionally ambitious games achieve scale without sacrificing the intimacy that makes them resonant. By understanding each game's emotional truth, nurturing its community, and allowing genuine resonance to build over time, Thatgamepublisher aims to help every partnered project reach farther while staying true to the feeling at its core.