Thatgamecompany Expands Into Publishing with Thatgamepublisher to Support Emotionally Driven Games

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 follows a growing pattern among successful indie developers who, after scoring a breakout title, branch out into publishing or funding to nurture other independent projects.

Recent examples include Innersloth, the creators of Among Us, which launched Outersloth in 2024 to support games like Clickolding and The Horror at Highrook; Kinetic Games, the studio behind Phasmophobia, which started Kinetic Publishing with a slate that features Precognition from Sam Barlow; Pocketpair, the team behind Palworld, which introduced Pocketpair Publishing; and Landfall Games, the makers of Peak, which now operate under the Evil Landfall label. The trend reflects a desire to reinvest success back into the 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‑person company, right? With extra money, you need to decide where to invest. The logical choice is to fund something you understand—other indie games. That’s why many indie studios are doing this." The financial reality was stark when Journey launched in 2012.

Chen told GamesIndustry.biz that the development of Journey nearly bankrupted the studio and forced a wave of layoffs. The situation is dramatically different today. Sky: Children of the Light, released in 2019, has become a global phenomenon, especially in China, and even inspired a film adaptation. The revenue generated by Sky now provides Thatgamecompany with the capital to back what it calls "emotionally ambitious" games.

Chen also highlighted a shift in how games reach audiences. In the early 2010s, distribution channels were dominated by platform owners like Sony. "Today, the distribution network belongs to the players, who are also influencers," he said. A popular indie title can amass millions of players who become organic promoters, offering a distribution reach that can surpass traditional media outlets such as GameSpot, IGN, or even Steam.

Another distinctive advantage for Thatgamecompany is its demographic profile. "We have a much bigger female audience reach than most game companies in the world," Chen noted, pointing out that roughly 70 % of Sky’s player base is female. This gender‑balanced audience creates a unique overlap for games that aim to appeal to both men and women, especially those who are new to gaming.

Thatgamepublisher has already signed a "couple" of projects, though details remain under wraps. In the launch announcement, Chen articulated the publisher’s philosophy: "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 proven they can forge lifelong friendships, heal personal struggles, reconnect 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 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 studio is seeking titles that "move people through play." He emphasized that genre, platform, or team size are not primary concerns. "We are 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 take players there," Xue explained. He added that "emotional" can encompass joy, chaos, humor, or any feeling that lingers after the screen goes dark. If a game aspires to leave that lasting impression, Thatgamepublisher wants to discuss it.

While many indie publishers focus on sub‑million‑dollar budgets, Thatgamepublisher is willing to back larger, AA‑level projects. "We are quite flexible when it comes to funding and project scale," Xue said.

"We work with solo developers who have immense creativity as well as larger teams with bigger budgets." The terms of each publishing deal will be tailored to the specific needs of the project. Xue stressed that, as developers themselves, they understand the importance of fair, transparent, and developer‑friendly partnerships that provide the support needed to realize the strongest version of a game.

Unlike some publishers that only offer financing, Thatgamepublisher is positioning itself as a full‑service publisher. Its suite includes funding, production planning, platform and launch strategy, marketing, community management, and long‑term IP development.

This contrasts with models like Outersloth or Evil Landfall, which primarily provide funding. The industry is moving toward modular publishing arrangements, where developers can pick and choose services. Luke Keighran of Silver Lining Interactive remarked that "the old school publishing model is dead," and the new approach is about flexibility.

Xue confirmed that Thatgamepublisher can adapt its involvement: "We can be modular around funding, marketing, or other specific support, but for emotionally ambitious projects we often prefer an integrated partnership. Creative development, production, positioning, marketing, community, and platform strategy are deeply interconnected for these games. Being involved across those areas lets us protect the emotional core of the game and help the team carry that vision to players." Ultimately, the publisher aims to meet each project where it is and shape the partnership around what will be most useful to the developer. The guiding belief remains that games can connect people through shared emotional experiences and bring out the best in humanity.

This philosophy has guided Thatgamecompany’s own catalogue—from Flow and Flower to Journey and Sky—and now it will extend to the broader indie community. "We learned from our own work that emotionally ambitious games often need a different playbook. The heart of a project may not be obvious at the outset; it can emerge through prototypes, iteration, quiet discoveries, and the right creative conversations.

Our role is to protect that process, giving developers the space, guidance, and alignment they need to discover the strongest version of their work," Xue concluded. Drawing on their experience running Sky: Children of the Light as a live‑service title with over 300 million downloads and seven years of global operation, Thatgamepublisher believes it can help other creators scale their emotionally resonant games without diluting their core feeling.

By understanding each game's emotional truth, building from its community, and allowing genuine resonance to create scale over time, the publisher hopes to help every project reach farther while staying true to the feeling at its heart.