Thatgamecompany, the acclaimed developer behind 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 in the independent game sector where studios that achieve a breakout success use their newfound resources to nurture other indie projects.
Recent examples include Innersloth, the creators of Among Us, which started Outersloth in 2024 to fund games like Clickolding and The Horror at Highrook; Kinetic Games, known for Phasmophobia, which formed Kinetic Publishing and is backing titles such as Precognition from Sam Barlow; Pocketpair, the team behind Palworld, which launched Pocketpair Publishing; and Landfall Games, the studio behind Peak, which introduced the Evil Landfall label. The trend reflects a desire among small teams to reinvest profits into the broader creative ecosystem rather than simply expanding their own staff. "Successful indie games are often built on very tight budgets," explains Jenova Chen, co‑founder of Thatgamecompany.
"When a title takes off, you suddenly have a surplus of cash, but you don't necessarily want to turn your boutique studio into a massive corporation. The logical place to allocate those funds is into other indie projects that you understand and care about. That's why many independent developers are now becoming publishers." Thatgamecompany's own history underscores the significance of this shift.
When Journey launched in 2012, the studio faced severe financial strain, to the point where Chen described the experience as nearly bankrupting the company and resulting in widespread layoffs. However, the release of Sky: Children of the Light in 2019 dramatically altered the picture. The game has enjoyed massive popularity worldwide—especially in China—and even inspired a feature film. The revenue generated by Sky now gives Thatgamecompany the ability to fund what Chen calls "emotionally ambitious games," projects that aim to touch players on a deep, personal level.
Chen also notes that the landscape of distribution has changed dramatically since Journey's debut. Back then, platforms such as PlayStation controlled the primary channels for reaching gamers. Today, distribution is largely driven by the players themselves, who act as influencers and word‑of‑mouth marketers.
A successful indie title can amass millions of dedicated fans, providing a distribution network that rivals traditional media outlets like GameSpot, IGN, or even Steam. "When you have an audience that loves a particular style of game, they become your most powerful channel," Chen says. Another distinguishing factor 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.
"If we highlight a game that appeals to both men and women, we can leverage that overlap to introduce titles to players who may have never played games before," Chen adds. While the specific titles under contract with Thatgamepublisher have not yet been disclosed, Chen outlined the publisher's overarching mission in a press release: "When we first started making games, many questioned whether interactive experiences could move people as profoundly as film, literature, or music.
Over the years, games have proven they can 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, told GamesIndustry.biz that the studio is seeking games that "move people through play." He emphasized that the publisher is not bound by genre, platform, or size constraints. "We are open to any team, any stage of development, and even prototypes," Xue explained. "What matters is whether the game reaches for meaningful emotional territory and uses interactivity to guide players there." According to Xue, "emotional" can encompass a wide spectrum—joy, chaos, humor, or melancholy. The key question is whether the experience lingers after the console is turned off.
If a game aspires to that lasting impact, Thatgamepublisher wants to discuss it. Unlike many indie publishers that focus on sub‑$1 million projects, Thatgamepublisher is prepared to back larger endeavors, including AA‑budget titles. "We are flexible with funding and scale," Xue said.
"We can work with solo creators bursting with creativity as well as larger teams with more extensive budgets." The terms of each publishing agreement will be tailored to the project's needs. Xue stressed that, as developers themselves, the team understands the importance of fair, transparent, and developer‑friendly partnerships. The publisher aims to provide the support necessary for teams to realize the strongest version of their game.
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 newer indie publishers that adopt a modular, funding‑only approach. Luke Keighran, founder of Silver Lining Interactive, remarked that "the old school publishing model is dead," and that modern developers can pick and choose the services they need—whether it's marketing, console conversion assistance, or full‑scale funding. Xue reiterated that Thatgamepublisher can adapt its involvement based on each developer's requirements, providing modular options for funding, marketing, or other specific support.
However, he added that for emotionally ambitious projects, an integrated partnership often yields the best results. By staying involved across creative development, production, positioning, marketing, community building, and platform strategy, the publisher can protect the game's emotional core and help the team deliver that vision to players. Ultimately, the goal is to meet each project where it stands and shape the partnership around what will be most useful for the developer. Xue highlighted the founding philosophy: games can connect people through shared emotional experiences and bring out the best in us.
This belief has guided Thatgamecompany's own titles—from Flow and Flower to Journey and Sky—and now informs its publishing ambitions. The company acknowledges that emotionally driven games often require a different playbook.
The heart of a project may not be evident at the outset; it can emerge through prototypes, iteration, quiet discoveries, and thoughtful creative conversations. Thatgamepublisher's role is to safeguard that process, offering developers space, guidance, and alignment to uncover the strongest version of their work.
Drawing on its experience running Sky: Children of the Light—a live‑service title with over 300 million downloads and seven years of global operation—Thatgamepublisher understands how deeply felt experiences can scale without losing their meaning. By grasping each game's emotional truth, building from its 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.