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 named Thatgamepublisher. This move mirrors a growing pattern among independent studios that, after scoring a breakout success, branch out into publishing or financing to nurture other indie projects.
Notable 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, the team behind Phasmophobia, which started Kinetic Publishing and now supports titles such as Precognition from Sam Barlow’s Immortality; Pocketpair, the developers of Palworld, which introduced Pocketpair Publishing; and Landfall Games, the studio behind Peak, which created the Evil Landfall label. The trend reflects a desire among small teams to reinvest surplus revenue into the indie ecosystem rather than scaling into massive corporations. Jenova Chen, co‑founder of Thatgamecompany, explains the logic behind the shift: “When an indie title that was built on a shoestring budget suddenly generates a lot of cash, the studio faces a choice.
You can either try to grow into a large company, which often isn’t the vision of a tight‑knit creative team, or you can allocate the extra funds toward something you understand best—other indie games. That’s why many indie studios are becoming publishers.” The financial picture was dramatically different when Journey launched in 2012.
Chen recalled to GamesIndustry.biz that the project nearly bankrupted the studio, forcing a wave of layoffs. In contrast, Sky: Children of the Light, released in 2019, has become a global phenomenon, especially in China, and even inspired a feature‑film adaptation. The revenue stream from Sky now enables Thatgamecompany to invest in what it describes as “emotionally ambitious” games, targeting budgets that can reach AA levels.
Chen also notes a shift in how games reach audiences. “Back when Journey came out, distribution channels were controlled by platform holders like PlayStation. Today, the distribution network lives in the hands of players—streamers, influencers, and community creators.
A successful indie title can amass millions of players who become its most powerful marketing engine.” He adds that the studio’s audience is uniquely balanced: roughly 70 % of Sky’s players are female, giving Thatgamepublisher a rare demographic overlap that can help promote titles appealing to both men and women, many of whom may be new to gaming. Although specific titles have not yet been disclosed, Chen confirmed that Thatgamepublisher has already signed a few projects. In the official press release, he articulated the publisher’s mission: “When we first started making games, many doubted that 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, reconnect 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 them 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 company is searching for games that “move people through play.” He emphasized that genre, platform, or team size are not decisive factors.
“We’re open to any team, any stage of development, even prototypes. What matters is whether the game reaches for meaningful emotional territory and uses interactivity to guide players there,” Xue said.
“‘Emotional’ can be joyful, chaotic, funny—any feeling that stays with someone after the screen goes dark.” While many indie publishers focus on sub‑million‑dollar budgets, Thatgamepublisher is willing to back larger endeavors. Xue explained that the studio’s funding model is flexible: “We can work with solo developers who have huge creative ideas or with larger teams that need AA‑level resources. The terms of each deal—recoup percentages, milestones, and support—will be tailored to the project’s needs.” He stressed that, as developers themselves, they understand the importance of fair, transparent, and developer‑friendly partnerships. Thatgamepublisher will operate as a full‑service publisher, offering financing, production planning, platform strategy, marketing, community management, and long‑term IP development.
This contrasts with some indie publishers that only provide funding. The industry is moving toward modular publishing models, where developers pick and choose the services they require—be it marketing, console porting, or funding. Luke Keighran of Silver Lining Interactive summed it up: “The old school publishing model is dead; today developers select the pieces they need.” Xue echoed this sentiment, saying Thatgamepublisher can adapt its involvement, from modular support to fully integrated partnerships, depending on what best serves the creator’s vision. The overarching philosophy driving the new venture is the belief that games can forge shared emotional experiences and bring out the best in people.
Xue linked this ethos directly to Thatgamecompany’s own portfolio, noting that titles like Flow, Flower, Journey, and Sky all embody this principle. He added that the studio’s experience running Sky as a live‑service with over 300 million downloads and seven years of global operation has taught them how to scale deeply felt experiences without diluting their core emotional impact. In summary, Thatgamepublisher aims to identify and nurture games that prioritize emotional resonance, offering flexible financing and comprehensive publishing services while preserving the creative heart of each project. By leveraging its unique audience demographics, industry experience, and commitment to developer‑friendly terms, the new label hopes to expand the reach of emotionally ambitious games and help independent creators connect with players worldwide.