Thatgamecompany, the creative force behind acclaimed titles such as Flow, Flower, Journey, and the widely beloved Sky: Children of the Light, has announced the formation of a new publishing division called Thatgamepublisher. This move follows a broader industry pattern where successful independent studios leverage their financial windfalls to nurture other indie 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 introduced Pocketpair Publishing; and Landfall Games, the team behind Peak, which created the Evil Landfall label. The trend reflects a growing belief that studios with a breakout hit can reinvest their profits into the ecosystem that helped them succeed.
Jenova Chen, co‑founder of Thatgamecompany, explains the logic behind the shift: "Successful indie games are often built on very lean budgets. When a title takes off, the studio suddenly has excess cash but remains a small team that doesn’t want to balloon into a massive corporation. The sensible way to use that money is to invest in something you understand—other indie games.
That’s why many studios are becoming publishers." The financial reality was starkly different when Journey launched in 2012. Chen has recounted to GamesIndustry.biz that the development of Journey nearly drove the studio to bankruptcy and forced 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 title’s ongoing success has generated substantial revenue, giving Thatgamecompany the capital to back what it calls "emotionally ambitious" projects.
Chen also notes a shift in how games reach players. In the era of Journey, distribution channels were dominated by platform owners like Sony.
Today, the distribution network is effectively owned by the players themselves, who act as influencers and word‑of‑mouth marketers. A hit indie game can amass millions of dedicated fans who become its most powerful promotional engine, often outpacing traditional media outlets such as GameSpot, IGN, or even Steam.
Another unique advantage for Thatgamecompany is its audience demographic. Chen points out that roughly 70% of Sky’s player base is female, giving the studio a reach into a segment that many other developers struggle to engage. "When we highlight a game that appeals to both men and women, we can tap into a highly overlapping audience, many of whom may be new to gaming altogether," he says.
While the exact slate of titles under Thatgamepublisher remains under wraps, Chen has shared the publisher’s core philosophy in a press release: "When we first began making games, many questioned whether interactive experiences could move players as deeply as film, literature, or music. Over the years, games have proven their capacity to forge lifelong friendships, heal personal struggles, reconnect loved ones, 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, elaborates on the type of projects the studio seeks. He emphasizes that genre, platform, or team size are secondary to the emotional impact a game can deliver.
"We are open to any team, at any stage, even prototypes, as long as the experience aims to stay with players after the screen goes dark," Xue says. He adds that "emotional" can encompass joy, chaos, humor, or melancholy, but the unifying question is whether the game leaves a lasting impression.
Unlike many indie publishers that focus on sub‑$1 million budgets, Thatgamepublisher is prepared to fund larger, AA‑level projects. Xue stresses flexibility: "We can work with solo creators who have boundless creativity or with larger studios that need AA‑scale resources. The terms of each deal—recoup percentages, milestones, and support structures—will be tailored to the specific needs of the developer.
As developers ourselves, we understand the importance of fair, transparent, and developer‑friendly partnerships." Thatgamepublisher will operate as a full‑service publisher, offering not only funding but also production planning, platform strategy, marketing, community management, and long‑term IP development. This comprehensive approach differentiates it from publishers like Outersloth or Evil Landfall, which often provide only funding. The industry is moving toward modular publishing models, where developers can pick and choose services.
Luke Keighran of Silver Lining Interactive has remarked that "the old school publishing model is dead," highlighting the demand for customizable support packages. Xue confirms that Thatgamepublisher can adopt a modular arrangement when appropriate, but he believes many emotionally driven games benefit from an integrated partnership.
By staying involved across creative development, production, positioning, marketing, community, and platform strategy, the publisher can protect the emotional core of a project and help the team bring that vision to a broad audience. The overarching mission, according to Xue, is to meet each project where it stands and shape a partnership that maximizes its potential.
He points to Thatgamecompany’s own history as evidence of the power of emotionally resonant games: "From Flow and Flower to Journey and Sky, we have seen how games can connect people through shared feelings and bring out the best in us. Yet we also know that this work extends beyond a single studio. Creators worldwide are exploring new ways to make players feel, and we want to help those ideas reach players." He adds that emotionally ambitious games often require a distinct playbook. The heart of a project may not be obvious at the outset; it can emerge through prototyping, iteration, quiet discovery, and meaningful conversations.
Thatgamepublisher’s role is to safeguard that process, providing the space, guidance, and alignment needed for developers to uncover the strongest expression of their vision. Drawing on the experience of running Sky: Children of the Light as a live‑service title with over 300 million downloads and seven years of global operation, Thatgamepublisher claims it understands how to scale deeply felt experiences without diluting their meaning. By focusing on the emotional truth of each game, building community, and allowing genuine resonance to drive growth, the publisher aims to help every project reach a wider audience while staying true to its core feeling.
In summary, Thatgamepublisher represents Thatgamecompany’s evolution from a small indie studio to a full‑service publisher dedicated to championing games that move people through play. By offering flexible funding, comprehensive support, and a philosophy rooted in emotional impact, the new label seeks to empower creators worldwide to push the boundaries of what interactive experiences can achieve.