Thatgamecompany, the creative force behind acclaimed titles such as Flow, Flower, Journey, and 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 breakout success expand into publishing or funding roles to nurture other indie projects. Recent examples include Innersloth’s Outersloth, which debuted in 2024 and backs games like Clickolding and The Horror at Highrook; Kinetic Games’ Kinetic Publishing, supporting titles such as Precognition from Sam Barlow; Pocketpair’s Pocketpair Publishing; and Landfall Games’ Evil Landfall label. The trend reflects a desire among small studios to reinvest surplus revenue back into the ecosystem that helped them thrive.
"It’s a common trajectory," explains Jenova Chen, co‑founder of Thatgamecompany. "Indie hits are typically built on shoestring budgets. When a game suddenly generates a flood of cash, the studio faces a choice: grow into a large company or allocate the funds in a way that aligns with its core strengths.
Because we understand game development intimately, investing in other indie creators feels like a natural extension of what we do." Thatgamecompany’s own journey illustrates why such a strategy makes sense. The release of Journey in 2012 nearly pushed the studio to the brink of bankruptcy, resulting in a wave of layoffs. In contrast, Sky: Children of the Light, launched in 2019, has become a global phenomenon—especially in the Chinese market—and even inspired a feature film. The financial upside from Sky now enables the company to fund what it calls "emotionally ambitious" games, a phrase that captures its long‑standing mission to create experiences that resonate on a personal level.
Chen also notes a shift in how games reach audiences. When Journey arrived, distribution channels were dominated by platform holders like PlayStation.
Today, distribution is increasingly player‑driven, with influencers and community leaders acting as the primary conduits for discovery. "A successful indie title can amass millions of players who become its most powerful promoters," he says.
"That gives us, as developers, a distribution advantage that rivals traditional media outlets." Another differentiator for Thatgamecompany is its demographic reach. Roughly 70 % of Sky’s player base is female, giving the studio a uniquely balanced audience. "When we highlight a game that appeals equally to men and women, we tap into a crossover that many other publishers can’t access," Chen adds, emphasizing that many of their players are newcomers to gaming, further widening the potential impact of emotionally driven titles.
While the publisher has already signed a few projects, details remain under wraps. In the official announcement, Chen articulated the philosophical foundation of Thatgamepublisher: "When we first began creating games, many doubted whether interactive experiences could move people as profoundly as film, literature, or music. Over the years, games have proven 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 deep, 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, elaborated on the kind of projects the studio seeks. "We are looking for games that move people through play," he told GamesIndustry.biz. "Genre, platform, or label doesn’t matter.
What matters is whether the experience reaches for meaningful emotional territory and uses interactivity to take players there." Xue clarified that "emotional" can encompass a wide spectrum—from joy and chaos to humor—so long as the experience lingers after the screen goes dark. This open‑ended criteria means Thatgamepublisher is willing to consider anything from early‑stage prototypes to near‑complete builds, and from solo developers to teams capable of handling AA‑level budgets.
Funding flexibility is another hallmark of the new label. While many indie publishers restrict themselves to sub‑million‑dollar projects, Thatgamepublisher is prepared to back larger ambitions. Xue explained that deal terms, including revenue share and recoupment structures, will be tailored to each project's needs. "As developers ourselves, we understand the importance of fair, transparent, and developer‑friendly partnerships," he said.
Unlike some peers that operate purely as funding conduits, Thatgamepublisher will function as a full‑service publisher. The studio plans to offer financing, production planning, platform strategy, marketing, community management, and long‑term IP development. This comprehensive approach contrasts with modular models championed by publishers such as Outersloth and Evil Landfall, which let developers pick and choose services. Luke Keighran of Silver Lining Interactive has argued that the "old school" publishing model is dead, favoring a flexible, à la carte system.
Xue acknowledges this shift but believes that emotionally ambitious projects often benefit from an integrated partnership, where creative development, production, positioning, marketing, community, and platform strategy are tightly interwoven. The ultimate goal, according to Xue, is to meet each project where it stands and shape a partnership that maximizes its potential. He points to Thatgamecompany’s own philosophy that games can forge shared emotional experiences and bring out the best in people.
"That belief has guided everything we’ve made—from Flow and Flower to Journey and Sky. But we also recognize that the emotional frontier is larger than any single studio. Around the world, creators are exploring new ways to make players feel, and we want to help those ideas reach an audience." He further explained that emotionally driven games often require a different playbook.
The core emotional truth of a project may not be evident at the outset; it can emerge through iteration, prototyping, and quiet discovery. Thatgamepublisher’s role is to protect that process, providing developers with the space, guidance, and resources needed to refine their vision. 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 believes it can scale heartfelt experiences without diluting their impact. By understanding each game's emotional core, building on its community, and allowing genuine resonance to drive growth, the publisher aims to help projects reach broader audiences while staying true to the feelings at their heart.
In summary, Thatgamepublisher represents Thatgamecompany’s next evolution: a publisher that leverages its own artistic legacy, demographic reach, and operational expertise to empower indie developers creating games that strive to move players emotionally. Whether a solo creator with a daring prototype or a mid‑size studio with AA‑budget ambitions, the label promises flexible, fair, and fully supported partnerships aimed at delivering experiences that linger long after the console is turned off.