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 independent developers who, after scoring a breakout success, expand into publishing or funding to uplift 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, known for Phasmophobia, which started Kinetic Publishing with titles such as Precognition, the newest work from Sam Barlow; Pocketpair, the studio behind Palworld, which now runs Pocketpair Publishing; and Landfall Games, the makers of Peak, which introduced the Evil Landfall label. The trend reflects a desire among small studios to reinvest profits into the ecosystem that nurtured them.
Jenova Chen, co‑founder of Thatgamecompany, explains the logic behind the shift: "Successful indie games are often built on shoestring budgets, and when a title suddenly generates a surplus of cash, the studio faces a dilemma. You don’t want to balloon into a massive corporation overnight, yet you have resources that need purposeful allocation. Investing in other indie developers—games you understand and share a passion for—becomes a natural extension of that philosophy." Chen recalls that the studio’s earlier flagship, Journey, released in 2012, nearly bankrupted the company and forced a round of layoffs. In contrast, Sky: Children of the Light, launched in 2019, has become a global phenomenon, especially in China, and even inspired a feature film.
The revenue stream from Sky now enables Thatgamecompany to fund what it calls "emotionally ambitious games" with budgets that can reach AA levels. The publishing landscape has also evolved. Chen notes that when Journey debuted, distribution channels were dominated by platform holders like PlayStation. Today, "the distribution network is owned by the players, who are influencers themselves." A hit indie title can amass millions of dedicated fans who act as organic distributors, often surpassing traditional media outlets such as GameSpot, IGN, or even Steam in reach.
This democratization of distribution gives indie studios a stronger incentive to become publishers, leveraging their own communities to spotlight new experiences. Another differentiator for Thatgamecompany is its audience composition.
Chen points out that roughly 70% of Sky's player base is female, giving the studio a uniquely gender‑balanced reach. "If we highlight a game that resonates with both men and women, we can tap into a crossover audience that includes many players who have never engaged with games before," he says.
Thatgamepublisher has already signed a handful of projects, though details remain under wraps. In its launch statement, Chen articulated the publisher's mission: "When we first began making games, many doubted whether interactive experiences could move people 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 deep, meaningful 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 lead of the publishing effort, told GamesIndustry.biz that the company is searching for titles that "move people through play." He emphasized that genre, platform, or team size are irrelevant; the decisive factor is whether a game can reach a meaningful emotional space and linger with players after the screen goes dark. "Emotional" can encompass joy, chaos, humor, or melancholy, but the common thread is lasting impact. While many indie publishers focus on sub‑million‑dollar budgets, Thatgamepublisher is prepared to back larger endeavors.
Xue explained that the studio is flexible regarding funding and scale, welcoming solo creators with bold ideas as well as larger teams pursuing AA‑level projects. The terms of each publishing agreement—such as revenue share and recoupment percentages—will be tailored to the specific needs of the developer, reflecting the studio’s own experience as creators who value fair, transparent, and developer‑friendly partnerships. Thatgamepublisher positions itself as a full‑service publisher, offering not only capital but also production planning, platform strategy, marketing, community management, and long‑term IP development. This contrasts with publishers like Outersloth or Evil Landfall, which primarily provide funding.
The industry is moving toward modular publishing models, where developers can pick and choose services. Luke Keighran of Silver Lining Interactive described the old school publishing model as dead, noting that today developers often select only the support they need—be it marketing, console porting, or funding. Xue reiterated that Thatgamepublisher can adapt its involvement to each project's requirements, offering modular arrangements for funding, marketing, or other specialized support.
However, he added that for emotionally ambitious games, an integrated partnership tends to be more effective because creative development, production, positioning, marketing, community building, and platform strategy are deeply intertwined. By staying engaged across these areas, the publisher can protect the game's emotional core and help the team deliver that vision to players. When asked why developers should consider signing with Thatgamepublisher, Xue highlighted the studio’s founding philosophy: games have the power to connect people through shared emotional experiences and bring out the best in humanity.
This belief has guided Thatgamecompany’s own catalog—from Flow and Flower to Journey and Sky. The studio acknowledges that the emotional ambitions of a project often require a distinct playbook. The heart of a game may emerge gradually through prototypes, iteration, and quiet discoveries. The publisher’s role is to safeguard that process, providing space, guidance, and alignment so developers can uncover the strongest version of their work.
Drawing on its experience running Sky: Children of the Light as an emotional live‑service game with over 300 million downloads and seven years of global operation, Thatgamepublisher claims it understands how to scale deeply felt experiences without diluting their meaning. By listening to player communities, nurturing genuine resonance, and building infrastructure that respects a game's emotional truth, the publisher aims to help each project reach a wider audience while staying true to its core feeling. In summary, Thatgamepublisher represents Thatgamecompany’s next evolution: a publisher that leverages its own emotionally driven legacy, its uniquely balanced audience, and its flexible, full‑service approach to empower indie creators worldwide to craft games that linger in the hearts of players long after the final frame.