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 mirrors a growing pattern in the indie sector where studios that achieve a breakout success leverage their newfound resources to become publishers or financiers for 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 is now supporting 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 underscores a shift toward studios using surplus capital to nurture projects that share their artistic sensibilities.
"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 thousands‑person company, right?
And then you can’t really spend the money, so with additional money, where can you invest? You want to invest in something you understand, something you really are familiar with. So investing into other indie games is a natural choice for everyone, and that’s why many indie companies are doing that." The financial reality was starkly different when Journey launched in 2012. Chen has recounted to GamesIndustry.biz that the development of Journey nearly pushed the studio to bankruptcy and resulted in a wave of layoffs.
The situation has turned around dramatically thanks to Sky: Children of the Light, released in 2019, which has become a global phenomenon—particularly in the Chinese market—and even inspired a feature film. The revenue generated by Sky now gives Thatgamecompany the means to fund what it calls "emotionally ambitious" games, projects that aim to touch players on a deeper level. Chen also notes a fundamental change in how games reach audiences. In the early 2010s, distribution channels were dominated by platform holders such as PlayStation.
Today, the distribution landscape is largely owned by the players themselves, who act as influencers and word‑of‑mouth ambassadors. A successful indie title can amass millions of players who become its most effective promotional engine, often surpassing traditional media outlets like GameSpot, IGN, or even Steam in reach. Another unique advantage for Thatgamecompany lies in its demographic profile. "We have a much bigger female audience reach than most of the game companies in the world," Chen says, pointing out that roughly 70 % of Sky's player base is female.
This gender‑balanced audience provides an ideal platform for showcasing games that appeal to both men and women, especially titles that might attract players who have never engaged with games before. While the specific titles in Thatgamepublisher's pipeline 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 shown us what impact they can have on people. Lifelong friendships formed. Personal struggles healed. Loved ones reconnected.
Hope restored. Those moments convinced us that games are capable of touching lives in profound ways.
Thatgamepublisher exists because we believe there are countless creators around the world discovering new emotional frontiers for this medium, 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 type of projects they are seeking. "We are looking for titles that move people through play. The typical genre or platform restrictions would not apply to us.
We are open to teams of any size, projects at any stage, and ideas still being prototyped. What matters is not the label, genre, scale, or format, but whether the game reaches for meaningful emotional territory and uses interactivity to take players there," Xue explained. He added that "emotional" can encompass a wide range of feelings—joy, chaos, humor—and the key question is whether the experience lingers after the screen goes dark.
This focus on lasting impact guides their selection process. Unlike many indie publishers that limit themselves to sub‑million‑dollar budgets, Thatgamepublisher is prepared to support larger, AA‑level projects. "We are quite flexible when it comes to funding and project scale," Xue said.
"We are open to working with everyone from solo developers with immense creativity to larger teams with AA‑level budgets." The terms of each publishing deal will be tailored to the specific needs of the developer, including revenue‑share structures and recoupment percentages. Xue emphasized that, as developers themselves, they understand the importance of fair, transparent, and developer‑friendly partnerships that empower creators to realize the strongest version of their games. 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 differentiates it from other indie publishers that often adopt a modular, funding‑only model.
Luke Keighran, founder of Silver Lining Interactive, has observed that "the old school publishing model is dead" and that modern developers prefer to pick and choose services they need—whether that be marketing, console porting assistance, or full‑scale publishing support. Xue confirmed that Thatgamepublisher can provide modular arrangements as well, adapting to each project's unique requirements.
However, he also noted that for emotionally ambitious titles, an integrated partnership—covering creative development, production, positioning, marketing, community engagement, and platform strategy—can deliver the most value and protect the game's emotional core throughout its lifecycle. Ultimately, the publisher aims to meet each project where it stands and shape a partnership that maximizes the developer’s creative freedom while supplying the resources and expertise needed to bring a heartfelt experience to a global audience.
By leveraging their own experience running Sky: Children of the Light—a live‑service title with over 300 million downloads and seven years of worldwide operation—Thatgamecompany believes they can help other creators scale their emotionally resonant games without diluting their essence. The overarching goal is simple: understand the emotional truth of each game, nurture its community, and let genuine resonance drive sustainable growth and lasting impact.