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 reflects a growing pattern among independent studios that have scored breakout successes and are now leveraging their financial windfalls to nurture other indie developers. Similar 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 studio behind Phasmophobia, which started Kinetic Publishing and now supports projects such as Precognition from Sam Barlow’s Immortality team; Pocketpair, known for Palworld, which opened Pocketpair Publishing; and Landfall Games, the makers of Peak, which introduced the Evil Landfall label. The trend underscores a shift in the industry: once‑small teams with a hit under their belts are turning into mini‑conglomerates that fund and promote peer projects.
Jenova Chen, co‑founder of Thatgamecompany, explains the logic behind the transition. “When an indie game that was built on a shoestring budget suddenly becomes a massive success, you end up with a surplus of cash,” he says. “But you don’t necessarily want to balloon your own studio into a thousand‑person operation.
Instead, you look for ways to invest that money in areas you understand best—other indie games. It’s a natural fit, and that’s why many indie studios are taking the publishing route.” The financial reality was starkly different when Journey launched in 2012. Chen has recounted to GamesIndustry.biz that the development of Journey nearly drove the studio to bankruptcy, forcing a wave of layoffs.
Fast forward to today, Sky: Children of the Light, released in 2019, has become a global phenomenon, especially in China, and has even spawned a feature‑film adaptation. The revenue generated by Sky has given Thatgamecompany the resources to pursue a new mission: supporting "emotionally ambitious" games, a phrase that captures the studio’s long‑standing belief that interactive experiences can move players as profoundly as film, literature, or music. Chen also notes a fundamental shift in distribution.
In the early 2010s, platforms like PlayStation held the reins on how games reached audiences. Now, “the distribution network is owned by the players themselves, who act as influencers,” he observes. A successful indie title can amass millions of dedicated fans who become its most effective marketing engine—often more powerful than traditional outlets like GameSpot, IGN, or even Steam.
This democratization of reach gives indie studios a compelling reason to become publishers: they already possess a built‑in audience that can champion new releases. Another distinctive advantage for Thatgamecompany lies in its demographic profile. Chen points out that roughly 70 % of Sky’s player base is female, giving the studio a broader gender reach than most game companies. "If we spotlight a game that appeals equally to men and women, we tap into a unique overlap," he explains, noting that many of their players are newcomers to gaming who are eager for fresh, emotionally resonant experiences.
While Thatgamepublisher has already signed a "couple" of projects, the titles remain under wraps. In a press release, Chen articulated the publisher’s overarching vision: “When we first began making games, many doubted whether interactive experiences could affect players as deeply as other art forms.
Over the years, we’ve witnessed games forging lifelong friendships, healing personal struggles, reconnecting loved ones, and restoring 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 initiative, elaborated on the type of projects the new label seeks.
“We are looking for games that move people through play,” Xue told GamesIndustry.biz. “Genre, platform, or label doesn’t matter. We’re open to any team size, any development stage, even prototypes.
What matters is whether the game reaches for meaningful emotional territory and uses interactivity to guide players there.” He added that "emotional" can encompass joy, chaos, humor, or melancholy, but the key question is: "Will this stay with someone after the screen goes dark?" If the answer is yes, Thatgamepublisher wants to start a conversation. Unlike many indie publishers that limit themselves to sub‑million‑dollar budgets, Thatgamepublisher is prepared to back larger ambitions.
Xue emphasized the label’s flexibility: “We can work with solo developers who have immense creativity or larger teams pursuing AA‑level budgets. The terms of each deal—recoup percentages, milestones, and support structures—will be tailored to the specific needs of the project.” He stressed that, as developers themselves, the team understands the importance of fair, transparent, and developer‑friendly partnerships. Thatgamepublisher is positioning itself as a full‑service publisher. In addition to providing capital, the label offers production planning, platform and launch strategy, marketing, community management, and long‑term intellectual‑property development.
This comprehensive approach contrasts with other indie publishers such as Outersloth or Evil Landfall, which often adopt a funding‑only model. The industry is moving toward modular publishing, where developers can pick and choose services—marketing, console porting, funding, or a combination thereof—according to their needs.
Luke Keighran, founder of Silver Lining Interactive, summed up the shift: "The old school publishing model is dead; today developers curate the exact support they require." Xue reiterated that Thatgamepublisher can adapt its involvement: “We can provide modular arrangements for funding, marketing, or specific support, but for emotionally ambitious projects we often find a more integrated partnership is beneficial. Creative development, production, positioning, marketing, community, and platform strategy are deeply interconnected. Being involved across those areas lets us protect the emotional core of the game and help the team carry that vision all the way to players.” The core philosophy driving the label 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, from the meditative flow of Flow and the delicate bloom of Flower to the pilgrimage of Journey and the communal wonder of Sky.
He noted that while Thatgamecompany has mastered this approach, the broader industry is now exploring similar emotional frontiers. "We want to help those ideas find their way to players," he said.
According to Xue, emotionally ambitious games often require a different playbook. The heart of a project may not be obvious at the outset; it can emerge through prototypes, iteration, quiet discoveries, and collaborative dialogue. Thatgamepublisher’s role is to safeguard that process, offering developers the space, guidance, and alignment needed to uncover the strongest version of their work. Drawing on its experience running Sky: Children of the Light as an emotional live‑service title—now boasting over 300 million downloads and seven years of global operation—Thatgamepublisher claims to understand how deeply felt experiences can scale without losing their meaning.
"By understanding each game’s emotional truth, building from its players and 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 summary, Thatgamepublisher represents Thatgamecompany’s evolution from a singular indie studio into a supportive hub for other creators who share a commitment to crafting games that move players on an emotional level.
With flexible funding, full‑service support, and a clear philosophical mission, the label aims to empower developers to push the boundaries of interactive storytelling and deliver experiences that linger long after the console is turned off.