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 in the independent game sector where studios that have achieved a breakout success leverage their newfound resources to nurture other developers. Recent examples include Innersloth, the creators of Among Us, which launched Outersloth in 2024 to fund games like Clickolding and The Horror at Highrook; Kinetic Games, known for Phasmophobia, which started Kinetic Publishing and is backing projects such as Precognition from Sam Barlow; Pocketpair, the studio behind Palworld, which introduced Pocketpair Publishing; and Landfall Games, the team behind Peak, which now operates under the Evil Landfall label.
The trend reflects a broader shift: indie studios that once operated on shoestring budgets are now in a position to reinvest profits into the ecosystem that helped them succeed. Jenova Chen, co‑founder of Thatgamecompany, explained the rationale behind the new venture.
He noted that successful indie titles often generate a surplus of cash after their launch, but small teams typically lack the infrastructure to absorb a sudden influx of resources. "You don't want to balloon into a thousand‑person company overnight," Chen said. "Instead, you look for ways to allocate that capital where you have expertise and passion.
Supporting other indie developers is a natural extension of that philosophy, and many of our peers are doing the same." The financial landscape was dramatically different when Journey launched in 2012. Chen recalled to GamesIndustry.biz that the project 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.
The revenue generated by Sky now gives Thatgamecompany the ability to fund what Chen describes as "emotionally ambitious" games—titles that aim to evoke deep, lasting feelings in players. Chen also highlighted a shift in distribution dynamics.
In the early 2010s, platforms like PlayStation controlled the primary channels for reaching gamers. Today, however, the distribution network is largely owned by the players themselves, who act as influencers and organic marketers. A successful indie game can amass millions of dedicated fans who become the most effective promotional engine, often outpacing traditional media outlets such as GameSpot, IGN, or even Steam.
"When a community loves a certain type of experience, they actively seek out similar games," Chen explained. "That grassroots reach gives indie studios a distribution advantage that didn't exist a decade ago." Another distinctive aspect of Thatgamecompany's audience is its strong female demographic. Roughly 70 % of Sky's player base identifies as female, a figure that far exceeds the industry average.
Chen believes this creates a unique opportunity to champion games that appeal to both men and women, especially those who may be new to gaming. "Our community includes many players who have never held a controller before," he said. "If we spotlight a title that resonates across gender lines, we can tap into an audience that is both diverse and highly engaged." While specific titles under the Thatgamepublisher banner have not yet been disclosed, the publisher has already signed a handful of projects.
In the official press release, Chen articulated the company's core mission: "When we first began making games, many questioned whether interactive experiences could move players as profoundly as film, literature, or music. Over the years, games have demonstrated 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 deeply meaningful 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 initiative, told GamesIndustry.biz that the studio is seeking games that "move people through play." He emphasized that genre, platform, or team size will not be the primary criteria. "We are open to any project, whether it's a prototype in early development or a near‑complete title," Xue said. "What matters is whether the game reaches for meaningful emotional territory and uses interactivity to guide players there." Xue elaborated on the definition of "emotional" within this context, noting that it can encompass joy, chaos, humor, or any feeling that lingers after the console is turned off.
"If a game stays with someone after the screen goes dark, we want to talk about it," he added. Unlike many indie publishers that focus on sub‑million‑dollar budgets, Thatgamepublisher is prepared to back larger, AA‑scale projects.
Xue described the publisher's flexibility: "We can work with solo developers who have boundless creativity as well as larger teams that need AA‑level funding. The terms of each deal—recoup percentages, milestones, and so forth—will be tailored to the specific needs of the project.
As developers ourselves, we understand the importance of fair, transparent, and developer‑friendly partnerships." The new label 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 distinguishes Thatgamepublisher from other indie publishers like Outersloth or Evil Landfall, which often provide funding only. The industry is moving toward modular publishing models, where developers can pick and choose services. Luke Keighran, founder of Silver Lining Interactive, recently remarked that "the old school publishing model is dead," and that modern developers prefer to select the exact support they require—be it marketing, console porting, or full‑scale production assistance.
Xue confirmed that Thatgamepublisher can adapt its involvement accordingly. "We can offer modular arrangements for funding, marketing, or specific support areas," he said.
"However, for emotionally ambitious projects, an integrated partnership often yields the best results. Creative development, production, positioning, marketing, community, and platform strategy are deeply interconnected. Being involved across those areas allows us to protect the emotional core of the game and help the team bring that vision to players." The overarching philosophy driving the publisher is the belief that games can forge shared emotional experiences and bring out the best in people.
Chen reflected on how this conviction has shaped every title Thatgamecompany has released, from Flow and Flower to Journey and Sky. He added that the studio's own journey has taught them that emotionally driven games frequently require a distinct playbook. "The heart of a project may not be obvious at the outset; it often emerges through prototyping, iteration, quiet discoveries, and the right creative conversations," Chen explained.
"Our role is to safeguard that process, providing developers with the space, guidance, and alignment they need to uncover the strongest version of their work." Drawing on their experience running Sky: Children of the Light as a live‑service title with over 300 million downloads and seven years of global operation, Thatgamecompany believes they have a proven formula for scaling heartfelt experiences without diluting their impact. "By understanding each game's emotional truth, building from its community, and allowing genuine resonance to drive growth, we aim to help every project reach a broader audience while staying true to its core feeling," Xue concluded. In summary, Thatgamepublisher represents a strategic expansion for Thatgamecompany, leveraging its financial success, deep understanding of emotional game design, and a uniquely engaged audience to support a new generation of indie developers.
By offering flexible, full‑service publishing solutions, the studio hopes to nurture games that not only entertain but also leave lasting emotional impressions on players worldwide.