Thatgamecompany, the creative force 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 among successful independent studios that, after achieving a breakout title, branch out into publishing or funding to nurture other indie projects. Recent examples include Innersloth, the developers 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 is supporting titles such as Precognition from Sam Barlow; Pocketpair, the studio behind Palworld, which introduced Pocketpair Publishing; and Landfall Games, the creators of Peak, which formed the Evil Landfall label.
The trend reflects a desire to reinvest earnings into the broader indie ecosystem. "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," explained 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." When Journey launched in 2012, Thatgamecompany was far from flush with cash. Chen told GamesIndustry.biz earlier this year that the development of Journey nearly bankrupted the studio and resulted in a wave of layoffs. The situation has dramatically shifted with Sky: Children of the Light, released in 2019, which has become a massive commercial success, especially in the Chinese market, and even inspired a feature film.
The profits from Sky now give Thatgamecompany the financial breathing room to back what it calls "emotionally ambitious" games. Chen also notes that the distribution landscape has evolved. In the era of Journey, major platforms like PlayStation controlled the channels through which games reached players.
Today, however, "the distribution network is owned by the players, who are influencers." A hit indie title can amass millions of players who become its most effective promoters, often out‑reaching traditional media outlets such as GameSpot, IGN, or even Steam. This shift gives indie studios a stronger incentive to become publishers, as they can leverage their own community reach to amplify new releases. Another distinctive advantage for Thatgamecompany is its audience demographic. Chen highlighted that roughly 70 % of Sky's player base is female, giving the studio a broader female reach than many other game companies.
"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," he said. Thatgamepublisher has already signed a "couple" of projects, though details remain under wraps. In a press release, Chen articulated the publisher's mission: "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 leader of the publishing initiative, told GamesIndustry.biz that the firm is searching for titles that "move people through play." He emphasized that genre, platform, or team size are not primary criteria. "The typical genre or platform restrictions would not apply to us," Xue said.
"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." According to Xue, "emotional" can encompass a wide spectrum—from joy and chaos to humor—as long as the experience lingers after the console is turned off. "If a game is chasing that, we want to have the conversation," he added.
While many indie publishers focus on sub‑million‑dollar budgets, Thatgamepublisher is willing to back larger endeavors. "We are quite flexible when it comes to funding and project scale," Xue explained. "We are open to working with everyone from solo developers with immense creativity to larger teams with AA‑level budgets." The specifics of each publishing deal—such as revenue share and recoup terms—will be tailored to the individual project's needs.
Xue stressed that, as developers themselves, the team understands the importance of fair, transparent, and developer‑friendly partnerships that still provide the resources required to realize a game's full potential. Thatgamepublisher will operate as a full‑service publisher, offering funding, production planning, platform and launch strategy, marketing, community management, and long‑term IP development.
This contrasts with some indie publishers that adopt a modular, funding‑only approach. Luke Keighran, founder of Silver Lining Interactive, remarked earlier that "the old school publishing model is dead" and that developers now choose the specific services they need, whether that be marketing, console conversion assistance, or full‑scale support. Xue reiterated that Thatgamepublisher can adapt its involvement to each developer's requirements, providing modular arrangements for funding, marketing, or other targeted support.
However, he also noted that emotionally ambitious 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. The overarching philosophy driving the publisher is the belief that games can forge deep emotional connections and bring out the best in people. Xue pointed to Thatgamecompany's own catalogue—Flow, Flower, Journey, and Sky—as evidence of this ethos.
He added that while the studio has demonstrated the power of emotionally resonant games, the potential extends far beyond a single studio's output. "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," he said. According to Xue, emotionally ambitious games often require a distinct development playbook. The heart of a project may not be evident at the outset; it can emerge through prototyping, iteration, quiet discoveries, and meaningful creative dialogue.
The publisher's role is to safeguard that process, offering room, guidance, and alignment for developers to uncover the strongest version of their work. 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 understands how to scale deeply felt experiences without diluting their meaning. By focusing on each game's emotional truth, building from 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 core.