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 mirrors a growing pattern in the indie sector where studios that have scored a breakout success leverage their newfound resources to support other independent developers. For example, Innersloth, the creators of the viral sensation Among Us, launched Outersloth in 2024 to fund projects like Clickolding and The Horror at Highrook. Earlier this year, Kinetic Games—known for the spooky co‑op title Phasmophobia—started Kinetic Publishing, adding games such as Precognition, the latest work from Sam Barlow of Immortality fame, to its roster.
Pocketpair, the studio behind the whimsical world of Palworld, introduced Pocketpair Publishing, while Landfall Games, the minds behind the chaotic multiplayer arena Peak, formed the Evil Landfall label. The trend is clear: indie studios that suddenly find themselves flush with cash often choose to reinvest that capital into the broader indie ecosystem. Jenova Chen, co‑founder of Thatgamecompany, explained the logic behind the shift: "Successful indie games are usually built on shoestring budgets. When a title takes off, you end up with more money than your tiny team knows how to spend.
You could grow the studio into a massive operation, but that would change the culture and focus that made the game special. Instead, we prefer to allocate the surplus to projects we understand and care about—other indie games.
It feels like a natural extension of what we love to do." Thatgamecompany's own financial journey has been anything but smooth. When Journey launched in 2012, the studio was on the brink of bankruptcy, and Chen has recounted that the project forced a near‑total staff layoff. The situation is dramatically different now. Sky: Children of the Light, released in 2019, has become a global phenomenon, especially in the Chinese market, and has even spawned a feature‑film adaptation.
The revenue generated by Sky has given Thatgamecompany the flexibility to invest in what Chen describes as "emotionally ambitious" games—titles that aim to touch players on a deeper, more personal level. Chen also highlighted how the distribution landscape has evolved. In the early 2010s, platforms like PlayStation controlled most of the distribution pipeline. Today, the power has shifted to the players themselves, who act as influencers and organic marketers.
"A successful indie title can reach millions of players who become its most effective distribution channel," Chen noted. "When you have an audience that loves heartfelt, cooperative experiences, they will naturally seek out similar games, giving you a reach that rivals traditional media outlets." Another distinctive advantage for Thatgamecompany is its demographic reach. Roughly 70% of Sky's player base is female, giving the studio a uniquely balanced audience compared to many other developers.
Chen believes this gender‑balanced community can help promote games that appeal to both men and women, especially titles that attract newcomers to gaming. Although specific titles have not yet been disclosed, Chen confirmed that Thatgamepublisher has already signed a "couple" of projects. In the official press release, he articulated the publisher's mission: "When we first began making games, many doubted whether interactive experiences could move players as profoundly as film, literature, or music. Over the years, we have witnessed games forge lifelong friendships, heal personal struggles, reunite loved ones, 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 leader of the publishing effort, told GamesIndustry.biz that the studio is searching for games that "move people through play." He emphasized that genre, platform, or team size are not primary considerations. "We are open to any team, at any development stage, even prototypes, as long as the game strives for meaningful emotional territory and uses interactivity to guide players there," Xue explained. "'Emotional' can be joyful, chaotic, funny—what matters is whether the experience lingers after the screen goes dark." While many indie publishers focus on micro‑budget titles under $1 million, Thatgamepublisher is prepared to back larger, AA‑level projects.
Xue said the publisher's funding model is flexible: "We can work with solo developers bursting with creativity or larger teams needing AA‑scale budgets. The terms—such as revenue share and recoup—are tailored to each project's needs. As developers ourselves, we understand the importance of fair, transparent, and developer‑friendly partnerships." Thatgamepublisher will operate as a full‑service publisher, offering not just capital but also production planning, platform strategy, marketing, community management, and long‑term IP development.
This comprehensive approach contrasts with some indie publishers that provide only funding. Luke Keighran, founder of Silver Lining Interactive, observed that "the old school publishing model is dead" and that developers now pick and choose services they need, whether that's marketing, console porting, or full‑scale support. Xue reiterated that Thatgamepublisher can adopt modular arrangements, customizing support to each developer's requirements.
However, for projects with an emotional core, he believes a more integrated partnership yields the best results. "Creative development, production, positioning, marketing, community, and platform strategy are often deeply interconnected for emotionally ambitious games. Being involved across those areas lets us protect the game's heart and help the team bring that vision to players," he said. The overarching philosophy behind the new label is simple: games have the power to connect people through shared emotional experiences.
Chen summed it up: "From Flow and Flower to Journey and Sky, we've always aimed to create experiences that resonate on a personal level. But we know that the potential for emotional storytelling extends far beyond our own studio. Around the world, creators are pushing the boundaries of what games can make us feel, and we want to help those ideas find their audience." He added that emotionally ambitious games often require a different development playbook. "The heart of a project may not be obvious at the start; it can emerge through prototypes, iteration, quiet discoveries, and the right creative conversations.
Our role is to protect that process, giving developers space, guidance, and alignment to discover the strongest version of their work." Drawing on its experience running Sky: Children of the Light as a live‑service title with over 300 million downloads and seven years of global operation, Thatgamecompany believes it can scale heartfelt experiences without diluting their impact. "By understanding each game's emotional truth, building from its community, and allowing genuine resonance to create scale over time, we aim to help every project reach farther while staying true to the feeling at its heart," Xue concluded. In short, Thatgamepublisher represents a new chapter for Thatgamecompany: a commitment to nurture indie creators who aspire to craft games that linger in the player's mind long after the console is turned off, leveraging the studio's unique audience, financial muscle, and deep expertise in emotionally driven game design.