Thatgamecompany, the creative force behind acclaimed titles such as Flow, Flower, Journey, and the recent 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 have scored a breakout hit begin to branch out into publishing or funding roles to nurture other independent developers.
Recent examples include Innersloth, the creators of Among Us, which launched Outersloth in 2024 to back games like Clickolding and The Horror at Highrook; Kinetic Games, known for Phasmophobia, which started Kinetic Publishing and now supports projects such as Precognition from Sam Barlow; Pocketpair, the team behind Palworld, which introduced Pocketpair Publishing; and Landfall Games, the studio behind Peak, which created the Evil Landfall label. The trend reflects a desire among successful indie teams to reinvest surplus earnings back into the ecosystem that helped them rise. "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‑person 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." When Journey launched in 2012, Thatgamecompany was far from flush with cash. Chen has recounted to GamesIndustry.biz that the development of Journey nearly bankrupted the studio and forced a mass lay‑off. The situation has changed dramatically since the release of Sky: Children of the Light in 2019. The game has performed exceptionally well worldwide—particularly in the Chinese market—and has even spawned a feature film.
Those profits now give Thatgamecompany the financial footing to back what it calls "emotionally ambitious" games. Chen also points out a shift in how games reach audiences.
In the early 2010s, distribution channels were dominated by platform holders like Sony. "Today, the distribution network is owned by the players, who are influencers," he says. A successful indie title can amass millions of players who act as organic promoters, providing a distribution reach that can surpass traditional media outlets such as GameSpot, IGN, or even Steam. "You have an audience who, let's say, love friendslop games, and they're looking for other friendslop games.
You actually have more influence for distribution than those outlets," Chen adds. Another distinctive asset for Thatgamecompany is its demographic profile. Roughly 70 % of Sky's player base is female, giving the studio a broader gender reach than many of its peers.
"If we promote or feature a game that would be appealing to men and women equally, our audience is going to have a very unique overlap, because there are many of our players who have never played games before," Chen notes. Thatgamepublisher has already signed a "couple" of projects, though details remain under wraps. In the official press release, Chen articulated the publisher's philosophy: "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, told GamesIndustry.biz that the studio is searching for titles that "move people through play." He emphasized that genre, platform, or team size are not decisive factors. "We are open to teams of any size, projects at any stage, and ideas still being prototyped.
What matters is not the label, genre, scale, or format, but whether the game reaches for meaningful emotional territory and uses interactivity to take players there," Xue explained. Xue further clarified that "emotional" can encompass joy, chaos, humor, or any feeling that lingers after the screen goes dark.
The publisher is prepared to back both modest indie experiments and larger AA‑budget endeavors. "We are quite flexible when it comes to funding and project scale," he said.
"We are open to working with everyone from solo developers with immense creativity to larger teams with AA‑level budgets." Deal terms will be tailored to each project's needs, with an emphasis on fairness and transparency. As developers themselves, Thatgamecompany understands the importance of partnerships that respect creative autonomy while providing the resources necessary to realize a game's fullest potential. Unlike some indie publishers that limit themselves to funding, Thatgamepublisher will operate as a full‑service publisher, offering financing, production planning, platform strategy, marketing, community management, and long‑term IP development. This comprehensive approach mirrors a broader industry shift toward modular publishing models, where developers can pick and choose the services they require.
Luke Keighran, founder of Silver Lining Interactive, recently remarked that "the old school publishing model is dead," and that modern publishers must be adaptable. Xue reiterated Thatgamepublisher's willingness to customize arrangements, noting that modular options for funding, marketing, or other support are available. However, he believes that emotionally driven projects often benefit from a more integrated partnership, where creative development, production, positioning, marketing, community engagement, and platform strategy are tightly coordinated.
"Being involved across those areas allows us to bring the most value, protect the emotional core of the game, and help the team carry that vision all the way to players," he said. Ultimately, the publisher aims to meet each project where it stands and shape the collaboration around what will be most useful for the developer. The underlying belief driving the initiative is that games can forge deep emotional connections and bring out the best in people.
This conviction has guided Thatgamecompany's own catalog—from Flow and Flower to Journey and Sky—and now informs its ambition to amplify the work of creators worldwide. "We learned from our own work that emotionally ambitious games often need a different playbook. The heart of a project is not always easy to define at the beginning. It can emerge through prototypes, iteration, quiet discoveries, and the right creative conversations.
Our role is to help protect that process, giving developers the room, guidance, and alignment they need to discover the strongest version of their work," Xue explained. Drawing on the experience of operating Sky: Children of the Light as a live‑service title with more than 300 million downloads and seven years of global operation, Thatgamepublisher believes it can help other studios scale their emotionally resonant experiences without sacrificing authenticity.
By understanding each game's emotional truth, building from its community, and allowing genuine resonance to drive growth, the publisher hopes to help every project reach farther while staying true to the feeling at its heart.