Thatgamecompany, the creative force behind celebrated titles such as Flow, Flower, Journey, and the widely adored Sky: Children of the Light, has announced the creation of a new publishing division named Thatgamepublisher. This move follows a growing pattern among successful independent developers who, after scoring a breakout hit, begin to invest in and champion other indie projects. Recent examples include Innersloth’s Outersloth, which backed games like Clickolding and The Horror at Highrook; Kinetic Games’ Kinetic Publishing, home to titles such as Precognition; Pocketpair’s Pocketpair Publishing; and Landfall Games’ Evil Landfall label.
The trend reflects a desire among small studios to reinvest surplus revenue into the broader indie ecosystem. “We see a recurring cycle,” explains Jenova Chen, co‑founder of Thatgamecompany. “A modestly funded indie title breaks out, generates a cash windfall, and the studio suddenly has more money than it knows what to do with. Most of us don’t want to balloon into a massive corporation; we prefer to keep our teams lean.
The logical place to allocate that capital is into projects we understand—other indie games. That’s why many of us are stepping into publishing.” The financial reality was starkly different when Journey launched in 2012. Chen has recounted that the game nearly drove the studio into bankruptcy, forcing a wave of layoffs.
The situation has dramatically shifted with Sky: Children of the Light, released in 2019. The title has become a global phenomenon—especially in China—and even inspired a feature film. The revenue stream from Sky now enables Thatgamecompany to fund what it describes as “emotionally ambitious” games, extending its artistic vision beyond its own internal development. Chen also points out a fundamental change in how games reach players.
In the early 2010s, distribution channels were dominated by platform holders like Sony. Today, the distribution network is effectively owned by the players themselves, who act as influencers and community leaders. A successful indie title can amass millions of dedicated fans who become the most potent promotional engine, often outpacing traditional media outlets such as GameSpot, IGN, or even Steam’s own recommendation algorithms. Another distinctive advantage for Thatgamecompany lies in its audience demographics.
Roughly 70 % of Sky’s player base is female, giving the studio a broader gender reach than many competitors. Chen notes that this unique mix allows the publisher to spotlight games that appeal equally to men and women, and even attract newcomers to gaming who may have never played before. While specific titles under Thatgamepublisher’s banner remain under wraps, Chen shared the publisher’s philosophical foundation in a press release: “When we first started making games, many doubted whether interactive experiences could move people as deeply as film, literature, or music.
Over the years, we’ve seen games forge lifelong friendships, heal personal struggles, reunite families, 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 bring those visions to life.” SJ Xue, Thatgamecompany’s vice‑president of growth and corporate development and the driving force behind the publishing venture, emphasizes that the publisher is looking for projects that “move people through play.” He stresses that genre, platform, or team size are secondary considerations. “What matters is whether the game reaches for meaningful emotional territory and uses interactivity to take players there,” Xue says.
“‘Emotional’ can be joyful, chaotic, funny, or even bittersweet. The key question is: will the experience linger after the screen goes dark?” Unlike many indie publishers that focus on sub‑$1 million budgets, Thatgamepublisher is prepared to support larger, AA‑level endeavors. Xue explains that the company is “quite flexible when it comes to funding and project scale,” welcoming solo creators with bold ideas as well as larger teams seeking substantial backing. The terms of each deal—such as revenue share and recoupment structures—will be tailored to the specific needs of the project, reflecting the studio’s own experience as developers who value fair, transparent, and developer‑friendly partnerships.
Thatgamepublisher is positioning itself as a full‑service publisher, offering not just capital but also production planning, platform strategy, marketing, community management, and long‑term IP development. This contrasts with some peers, like Outersloth and Evil Landfall, which currently operate primarily as funding‑only entities. Industry observers note a shift toward modular publishing models, where developers can pick and choose services.
Luke Keighran of Silver Lining Interactive summed it up: “The old school publishing model is dead; today developers select the exact support they need—whether it’s marketing, console conversion, or funding.” Xue concurs, stating that Thatgamepublisher can adapt its involvement to match each developer’s requirements, from modular assistance to fully integrated partnerships. For projects with an emotional focus, Xue argues that an integrated approach is often most effective. “Creative development, production, positioning, marketing, community, and platform strategy are deeply interconnected for emotionally ambitious games. Being involved across those areas lets us protect the game’s emotional core and guide the team from concept to player.” The publisher’s overarching mission ties back to Thatgamecompany’s core belief: games can forge shared emotional experiences that bring out the best in people.
Chen reflects, “That belief shaped everything we made—from Flow and Flower to Journey and Sky. But we know the journey is bigger than one studio. Creators worldwide are exploring new ways to make players feel, and we want to help those ideas reach audiences.” 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 claims it understands how to scale deeply felt experiences without diluting their impact. By grounding each project in its emotional truth, nurturing its community, and allowing genuine resonance to drive growth, the publisher aims to help developers expand their reach while staying true to the heart of their games.
In summary, Thatgamepublisher emerges as a flexible, full‑service indie publishing arm backed by a studio renowned for emotionally resonant experiences. With a willingness to fund projects of varying scales, a commitment to fair developer terms, and a philosophy that places emotional impact above genre conventions, the new label seeks to empower creators worldwide to push the emotional boundaries of interactive entertainment.