Thatgamecompany, the creative force behind acclaimed titles such as Flow, Flower, Journey, and the widely beloved Sky: Children of the Light, has announced the formation of a new publishing division called Thatgamepublisher. This move follows a growing pattern in the indie sector where studios that have achieved a breakout hit expand into publishing or investment roles to nurture other independent developers. Recent examples include Innersloth, the creators of Among Us, which started Outersloth in 2024 to back games like Clickolding and The Horror at Highrook; Kinetic Games, known for Phasmophobia, which launched Kinetic Publishing and now supports titles such as Precognition from Sam Barlow; Pocketpair, the team behind Palworld, which introduced Pocketpair Publishing; and Landfall Games, the studio behind Peak, which formed the Evil Landfall label.
The trend reflects a desire among successful indie teams to reinvest surplus earnings back into the ecosystem that helped them thrive. "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," explains Jenova Chen, co‑founder of Thatgamecompany. "But then you are a small team making games; you don’t want to suddenly become a thousand‑person studio, right? With extra money you need to decide where to allocate it, and the logical place is something you understand deeply.
Investing in other indie projects is a natural choice, which is why many indie studios are taking this route." Thatgamecompany’s own journey illustrates why this model feels intuitive. When Journey launched in 2012, the studio was nearly bankrupted; Chen has recounted that the project forced a massive lay‑off across the company. The financial strain was severe, and the studio barely survived.
Fast forward to 2019, Sky: Children of the Light arrived and quickly became a global phenomenon, especially in the Chinese market, even spawning a feature‑film adaptation. The revenue generated by Sky has given Thatgamecompany a solid financial foundation, allowing it to earmark profits for what Chen describes as "emotionally ambitious games"—titles that aim to move players on a deeper, more personal level.
The distribution landscape has also shifted dramatically since Journey’s era. Back then, console manufacturers like Sony controlled the primary channels for getting games to players.
Today, Chen observes, the distribution network is effectively owned by the players themselves, who act as influencers and word‑of‑mouth promoters. A successful indie title can now reach millions of users organically, turning the player community into the strongest marketing engine. "You have an audience that loves a certain style of game, and they’ll seek out similar experiences.
In many cases, that community wields more influence than traditional media outlets like GameSpot, IGN, or even Steam," he notes. Another unique advantage Thatgamecompany brings to the table is its demographic reach. Chen points out that roughly 70 % of Sky’s player base is female, giving the studio a broader gender balance than most developers.
This diverse audience can help promote games that appeal to both men and women, especially titles that might introduce newcomers to gaming for the first time. While specific projects under Thatgamepublisher remain under wraps, Chen shared the publisher’s overarching philosophy in a press release: "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 their capacity to forge lifelong friendships, heal personal struggles, reconnect loved ones, and restore hope. Those moments convinced us that games can touch lives profoundly. 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 is seeking.
He emphasized that the publisher is not confined by genre, platform, or development stage. "We are open to teams of any size, from solo creators with a spark of brilliance to larger groups capable of handling AA‑level budgets. What matters is whether the game reaches for meaningful emotional territory and uses interactivity to guide 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 lingering impression, the publisher wants to discuss it. Unlike many indie publishers that limit themselves to sub‑million‑dollar projects, Thatgamepublisher is prepared to back larger ambitions.
Xue noted that funding terms, including revenue splits, will be tailored to each project's needs. "As developers ourselves, we understand the importance of fair, transparent, and developer‑friendly partnerships," he said. "Our goal is to provide the support required to realize the strongest version of each game." Thatgamepublisher is positioning itself as a full‑service publisher, offering not just capital but also production planning, platform strategy, launch support, 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 focus solely on funding.
The industry is moving toward modular publishing models, where developers can pick and choose services they need. Luke Keighran of Silver Lining Interactive summed it up: "The old‑school publishing model is dead; today developers select the services—marketing, console conversion, funding, or all of the above—that make sense for them." Xue reaffirmed that Thatgamepublisher can adapt its involvement based on a developer’s requirements, offering modular arrangements for funding, marketing, or other specific support.
However, he also highlighted that emotionally ambitious projects often benefit from a more integrated partnership, where creative development, production, positioning, marketing, community, and platform strategy are tightly interwoven. "Being involved across those areas allows us to protect the emotional core of the game and help the team carry that vision all the way to players," Xue said. When asked why developers should consider signing with Thatgamepublisher, Xue pointed back to the studio’s founding belief: games can connect people through shared emotional experiences and bring out the best in humanity.
He cited the company’s own portfolio—Flow, Flower, Journey, and Sky—as proof of that philosophy in action. Yet he stressed that this mission extends beyond a single studio. "Around the world, creators are exploring new ways to expand what games can make people feel, and we want to help those ideas reach players," he said. Xue explained that emotionally ambitious games often require a distinct playbook.
The heart of a project may not be evident at the outset; it can emerge through prototyping, iteration, quiet discoveries, and thoughtful conversation. The publisher’s role is to safeguard that process, providing room, guidance, and alignment for developers to uncover the strongest expression of their vision. Drawing on its experience running Sky: Children of the Light—a live‑service title with over 300 million downloads and seven years of global operation—Thatgamepublisher believes it understands how to scale deeply felt experiences without diluting 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.