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 follows a growing pattern among successful indie developers who, after scoring a breakout hit, create publishing arms to nurture other independent projects. In recent years, Innersloth, the creators of Among Us, launched Outersloth in 2024 to back games like Clickolding and The Horror at Highrook. Earlier this year, Kinetic Games, known for Phasmophobia, introduced Kinetic Publishing, which already includes titles such as Precognition from Sam Barlow’s Immortality team.
Pocketpair, the studio behind Palworld, started Pocketpair Publishing, while Landfall Games—famous for Peak—rolled out the Evil Landfall label. The trend reflects a broader shift in the industry toward indie studios leveraging their success to become financiers and mentors for peers. Jenova Chen, co‑founder of Thatgamecompany, explained the rationale behind the new venture: "When an indie game that was built on a shoestring budget becomes a massive success, you end up with a surplus of cash.
But you don’t want to blow that up by turning a small, tight‑knit team into a sprawling corporation. Instead, you look for ways to invest that money in something you understand deeply—other indie games. That’s why many indie studios are moving into publishing." The financial reality was stark when Journey launched in 2012. Chen has recounted that the project nearly bankrupted the studio, forcing a wave of layoffs.
In contrast, Sky: Children of the Light, released in 2019, has generated a steady stream of revenue, especially in the Chinese market, and even inspired a feature film. Those profits now give Thatgamecompany the capacity to fund what it calls "emotionally ambitious" games, projects that aim to touch players on a deeper level than pure mechanics.
Chen also highlighted how distribution has evolved. In the era of Journey, platforms like PlayStation controlled the majority of the pipeline. Today, "the distribution network belongs to the players," he noted, pointing to the power of influencers, streamers, and community word‑of‑mouth.
A successful indie title can now reach millions of players organically, providing a distribution channel that rivals traditional media outlets such as GameSpot, IGN, or even Steam. 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 of its peers. Chen believes this unique overlap can help promote games that appeal to both men and women, especially titles that might attract players who have never engaged with games before. While specific titles under Thatgamepublisher remain under wraps, the publisher’s mission statement, shared in a press release, underscores its emotional focus: "When we first began making games, many questioned whether interactive experiences could move players as deeply as film, literature, or music.
Over the years, games have proven they can forge lifelong friendships, heal personal struggles, reconnect loved ones, and restore hope. 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 lead for the publishing initiative, elaborated on the types of projects the studio seeks. "We’re not bound by genre, platform, or size.
Whether it’s a solo prototype or a AA‑budget production, what matters is whether the game reaches for meaningful emotional territory and uses interactivity to guide players there," Xue said. He added that emotional impact can manifest as joy, chaos, humor, or any feeling that lingers after the screen goes dark. Unlike many indie publishers that limit themselves to funding smaller games—typically under $1 million—Thatgamepublisher is prepared to back larger, more ambitious endeavors.
Xue emphasized flexibility in both financing and partnership structures, noting that terms such as revenue share will be tailored to each project's needs. "As developers ourselves, we understand the importance of fair, transparent, and developer‑friendly deals," he explained. Thatgamepublisher will operate as a full‑service publisher, offering not only capital but also production planning, platform strategy, marketing, community management, and long‑term IP development. This comprehensive approach contrasts with the modular models adopted by publishers like Outersloth and Evil Landfall, which often provide only select services.
Luke Keighran of Silver Lining Interactive recently observed that the "old school publishing model is dead," and that modern developers prefer to pick and choose the services they require. Xue reiterated that Thatgamepublisher can adapt its involvement based on a developer’s specific needs, whether that means a modular arrangement focused solely on funding or a deeper partnership covering creative development, production, positioning, marketing, and community engagement. He argued that emotionally driven projects benefit from an integrated approach because the creative core, production pipeline, and player outreach are tightly intertwined.
When asked why developers should consider signing with Thatgamepublisher, Xue pointed back to the studio’s founding philosophy: games can forge shared emotional experiences that bring out the best in people. He cited the studio’s own portfolio—Flow, Flower, Journey, and Sky—as evidence of that belief. "We’ve learned that emotionally ambitious games often need a different playbook.
The heart of a project may emerge through prototypes, iteration, and quiet discoveries. Our role is to protect that process, giving developers the space, guidance, and resources to uncover the strongest version of their work," Xue said.
Drawing on more than 300 million downloads of Sky: Children of the Light and seven years of operating a live‑service emotional experience, Thatgamecompany believes it can help other creators scale their visions without diluting their emotional core. "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.