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 indie sector where studios that achieve breakout success leverage their newfound resources to nurture other independent developers. Recent examples include Innersloth’s Outersloth, which in 2024 began supporting games like Clickolding and The Horror at Highrook; Kinetic Games’ Kinetic Publishing, home to titles such as Precognition from Sam Barlow; Pocketpair’s Pocketpair Publishing; and Landfall Games’ Evil Landfall label.
Jenova Chen, co‑founder of Thatgamecompany, explains that the shift is almost inevitable: "When an indie game that started on a shoestring budget becomes a massive hit, you suddenly have a surplus of cash. Yet you don’t want to balloon into a huge corporation. The logical place to invest that money is in something you understand—other indie games." He recalls that the original Journey, released in 2012, nearly bankrupted the studio and forced a wave of layoffs. By contrast, Sky: Children of the Light, launched in 2019, has become a global phenomenon, especially in China, and even inspired a feature film.
The revenue generated by Sky now enables Thatgamecompany to fund what it calls "emotionally ambitious" projects. Chen also notes a fundamental change in how games reach audiences.
In the early 2010s, distribution channels were dominated by platform holders like Sony. Today, the distribution network belongs to the players themselves—streamers, influencers, and community leaders who act as de‑facto marketers. "A successful indie title can attract millions of players who become its most powerful distribution engine," Chen says. "Your audience might be looking for the next experience that feels similar to what they love, and that word‑of‑mouth reach often outweighs traditional media outlets." Another differentiator for Thatgamepublisher is its demographic reach.
Chen points out that roughly 70 % of Sky’s player base is female, giving the studio a uniquely balanced audience. "When we spotlight a game that appeals to both men and women, we tap into a community that includes many people who have never played games before," he adds. While the publisher has already signed a handful of projects, details remain under wraps. In the official announcement, Chen articulated the philosophical backbone of the new venture: "When we first started making games, many questioned whether interactive experiences could move people as deeply as film, literature, or music.
Over the years, games have proved they can foster lifelong friendships, heal personal struggles, reconnect loved ones, and restore hope. 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, emphasizes that the label is looking for games that "move people through play" regardless of genre, platform, or stage of development.
"We are open to solo developers with a spark of creativity as well as larger teams working with AA‑level budgets. What matters is whether the experience reaches for meaningful emotional territory and stays with the player after the screen goes dark," Xue explains. The publisher’s funding model is also more flexible than many of its peers. While many indie publishers limit themselves to sub‑million‑dollar projects, Thatgamepublisher is prepared to support larger budgets when the vision warrants it.
Deal terms, including revenue splits and recoupment percentages, will be tailored to each project’s needs. Xue stresses that, as developers themselves, they understand the importance of fair, transparent, and developer‑friendly partnerships. Thatgamepublisher positions itself as a full‑service publisher, offering not only capital but also production planning, platform strategy, launch support, marketing, community management, and long‑term IP development. This contrasts with publishers like Outersloth or Evil Landfall, which often provide only funding.
Industry observers such as Luke Keighran of Silver Lining Interactive argue that the traditional publishing model is dying, replaced by modular services that developers can pick and choose. Xue acknowledges this trend, stating that the studio can provide modular arrangements for funding, marketing, or other specific needs, but believes that emotionally ambitious projects benefit from an integrated partnership that protects the game's core feeling throughout development and release.
The overarching mission, according to Xue, is rooted in the belief that games can forge deep emotional connections and bring out the best in people. He cites the studio’s own portfolio—from the meditative Flow to the communal Journey and the expansive Sky—as evidence that interactive experiences can touch hearts on a global scale. By leveraging the operational expertise gained from running Sky as a live‑service title with over 300 million downloads and seven years of worldwide operation, Thatgamepublisher aims to help other creators scale their emotionally resonant games without diluting their essence. In summary, Thatgamepublisher represents Thatgamecompany’s evolution from a small indie studio to a catalyst for a new wave of emotionally driven games.
By combining financial resources, distribution insight, a uniquely balanced player demographic, and a flexible, full‑service publishing approach, the company hopes to empower developers worldwide to explore untapped emotional territories and deliver experiences that linger long after the console is turned off.