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 in the independent game sector where studios that have scored a breakout success leverage their newfound resources to nurture other indie projects. Recent examples include Innersloth, creators of Among Us, which launched the Outersloth label in 2024 to back games like Clickolding and The Horror at Highrook; Kinetic Games, known for Phasmophobia, which started Kinetic Publishing and is supporting titles such as Precognition from Sam Barlow; Pocketpair, the team behind Palworld, which now runs Pocketpair Publishing; and Landfall Games, the developers of Peak, which introduced the Evil Landfall publishing arm. The trend reflects a desire among small, successful teams to reinvest surplus capital into areas where they have expertise.
Jenova Chen, co‑founder of Thatgamecompany, explained the logic behind the shift: "When an indie title that was built on a shoestring budget suddenly generates a large profit, the studio often faces a dilemma. You don’t want to balloon into a massive corporation, yet you have cash that needs to be put to good use. The most natural place to invest is back into the indie ecosystem, into games you understand and care about." Chen recalled that the studio’s earlier masterpiece, Journey, released in 2012, nearly drove the company to bankruptcy and forced a wave of layoffs. By contrast, Sky: Children of the Light, launched in 2019, has become a global phenomenon—especially in China—and even inspired a feature‑film adaptation.
The revenue from Sky now gives Thatgamecompany the financial freedom to fund what it calls "emotionally ambitious" games. Chen also highlighted how the distribution landscape has evolved.
In the early 2010s, platforms like PlayStation controlled most of the reach, but today "the distribution network is owned by the players, who are influencers." A successful indie title can amass millions of dedicated fans who act as organic marketers, often out‑performing traditional media outlets such as GameSpot, IGN, or even Steam in terms of word‑of‑mouth reach. This shift empowers indie developers to become publishers themselves, because they already possess a ready‑made audience that trusts their taste. Another unique advantage for Thatgamecompany is its demographic profile. Chen noted that roughly 70 percent of Sky’s player base is female, giving the studio a broader gender balance than many competitors.
"When we showcase a game that appeals to both men and women, we tap into an audience that includes many people who have never played games before," he said, underscoring the potential for crossover appeal. While Thatgamepublisher has already signed a few undisclosed projects, the publisher’s mission statement, released in a press announcement, frames its purpose in emotive terms: "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 leader of the publishing effort, told GamesIndustry.biz that the studio is searching for games that "move people through play." He emphasized that genre, platform, or team size are irrelevant; what matters is whether a title can leave a lasting emotional imprint after the console is turned off. "Emotional can be joyful, chaotic, even funny," Xue added. "If a game stays with someone after the screen goes dark, we want to talk." Unlike many indie publishers that limit themselves to sub‑million‑dollar budgets, Thatgamepublisher is prepared to back larger, AA‑scale projects. Xue explained that the publisher’s funding model is flexible, catering to solo creators with groundbreaking ideas as well as larger teams seeking substantial financial support.
Deal terms, such as revenue splits, will be tailored to each project's needs, reflecting the studio’s own experience as developers who value fair, transparent, and developer‑friendly partnerships. Thatgamepublisher is positioning 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 comprehensive approach contrasts with other indie publishers like Outersloth or Evil Landfall, which often adopt a modular, funding‑only model. Industry observer Luke Keighran of Silver Lining Interactive remarked that "the old school publishing model is dead" and that modern developers prefer to pick and choose services—be it marketing, console porting, or funding—according to their specific needs.
Xue reiterated that Thatgamepublisher can provide modular arrangements, but for projects with a strong emotional core, an integrated partnership is often more beneficial. He explained that creative development, production, positioning, marketing, community engagement, and platform strategy are deeply intertwined for emotionally driven games. By staying involved across these areas, the publisher can protect the game's emotional essence and guide the team from concept to player.
Ultimately, the goal is to meet each project where it stands and shape a partnership that maximizes its potential. Xue summed up the philosophy: "Games can connect people through shared emotional experiences and bring out the best in us. That belief has shaped everything we’ve made—from Flow and Flower to Journey and Sky.
We now want to amplify that impact by supporting creators worldwide who are pushing the emotional boundaries of the medium. Our experience running Sky as a live‑service title with over 300 million downloads teaches us how to scale heartfelt experiences without diluting their meaning.
By understanding each game's emotional truth, building on its community, and allowing genuine resonance to drive growth, we aim to help every project reach farther while staying true to its heart."