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 indie sector where studios that have achieved breakout success expand into publishing or funding roles to nurture other independent creators.
Earlier this year, Innersloth, the team behind the viral sensation Among Us, unveiled Outersloth to back games like Clickolding and The Horror at Highrook. Similarly, Kinetic Games, known for Phasmophobia, started Kinetic Publishing and is already supporting projects including Precognition from Sam Barlow’s Immortality series.
Pocketpair, the makers of Palworld, introduced Pocketpair Publishing, while Landfall Games, creators of Peak, launched the Evil Landfall label. The trend reflects a broader shift toward indie studios leveraging their financial windfalls to become patrons of the next generation of games.
"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." Thatgamecompany's own history underscores the difficulty of turning a creative vision into a sustainable business. When Journey launched in 2012, the studio was nearly bankrupted; Chen has recounted that the project forced a massive lay‑off across the company. The situation has transformed dramatically thanks to Sky: Children of the Light, released in 2019. The game has become a global phenomenon, especially in China, and even inspired a feature‑film adaptation.
The revenue generated by Sky now gives Thatgamecompany the financial freedom to allocate profits toward what Chen describes as "emotionally ambitious games." The distribution landscape has also evolved. Chen notes that during Journey's era, platforms like PlayStation controlled most of the distribution pipeline. Today, "the distribution network is owned by the players, who are influencers." 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 reach means indie studios are in a stronger position to act as publishers themselves, using their community as a launchpad for new experiences. Another distinctive advantage for Thatgamecompany is its audience composition.
"We have a much bigger female audience reach than most of the game companies in the world," Chen says, pointing out that roughly 70 % of Sky's player base is female. This demographic balance allows the publisher to champion games that appeal across gender lines, tapping into a segment of gamers who may be new to the medium. While the exact slate of titles under Thatgamepublisher remains under wraps, Chen shared the company's guiding philosophy in a press release: "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 lead of the publishing effort, elaborated on the type of projects the studio is seeking. He emphasized that genre, platform, or team size are secondary to the core question: "Does the game reach for meaningful emotional territory and use interactivity to take players there?" He added that emotional impact can manifest as joy, chaos, humor, or any feeling that lingers after the screen goes dark. If a prototype or concept aspires to that lasting resonance, Thatgamepublisher wants to discuss it.
Unlike many indie publishers that limit themselves to sub‑million‑dollar budgets, Thatgamepublisher is prepared to back larger, AA‑scale endeavors. Xue explained that the publisher's funding model is flexible, ranging from solo developers with a spark of creativity to multi‑person teams requiring more substantial resources.
The specifics of each deal—such as revenue share and recoupment terms—will be tailored to the project's needs, reflecting the company's own experience as developers who value fair, transparent, and developer‑friendly partnerships. Thatgamepublisher is positioning itself as a full‑service publisher. In addition to financing, it will provide production planning, platform and launch strategy, marketing, community management, and long‑term IP development. This comprehensive approach contrasts with the modular models adopted by some peers, such as Outersloth or Evil Landfall, which often focus solely on funding.
Luke Keighran, founder of Silver Lining Interactive, recently observed that "the old school publishing model is dead" and that modern developers prefer to pick and choose services they need, whether that's marketing, console conversion assistance, or full‑scale support. Xue reiterated that Thatgamepublisher can adapt its involvement to suit each developer, offering modular options when appropriate. However, he argued that emotionally driven projects often benefit from an integrated partnership, where creative development, production, positioning, marketing, community engagement, and platform strategy are tightly aligned. By staying involved across these domains, the publisher aims to protect the emotional core of a game and help the team carry that vision from concept to player.
When asked why creators should consider signing with Thatgamepublisher, Xue highlighted the company's founding belief: games can forge deep connections through shared emotional experiences and bring out the best in people. He noted that this philosophy has guided every Thatgamecompany title—from Flow and Flower to Journey and Sky. Yet Chen and his team recognize that the emotional frontier extends far beyond a single 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," Xue said.
The publisher also draws on Thatgamecompany's operational expertise. Managing Sky: Children of the Light as a live‑service experience with over 300 million downloads and seven years of global operation has taught the team how to scale emotionally resonant experiences without diluting their impact. By understanding each game's emotional truth, building from its community, and allowing genuine resonance to drive growth, Thatgamepublisher aims to help projects reach broader audiences while staying true to their heartfelt intent.
In summary, Thatgamepublisher represents a new chapter for a studio that has long championed games as an artistic medium capable of moving players on a profound level. With flexible funding, full‑service support, and a clear focus on emotional depth, the publisher seeks to empower indie developers worldwide to create experiences that linger long after the console is turned off.