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 successful indie developers who, after scoring a breakout title, create publishing arms to nurture other independent projects.
Recent examples include Innersloth’s Outersloth, which backed games like Clickolding and The Horror at Highrook; Kinetic Games’ Kinetic Publishing, home to titles such as Precognition from Sam Barlow; Pocketpair’s Pocketpair Publishing; and Landfall Games’ Evil Landfall label. The trend reflects a desire to reinvest surplus earnings into the broader indie ecosystem. Jenova Chen, co‑founder of Thatgamecompany, explains the logic behind the shift: "When an indie game that was built on a shoestring budget becomes a massive success, you suddenly have a lot of cash on hand.
But you don’t want to turn a tight‑knit studio into a massive corporation overnight. The sensible way to use that money is to invest in areas you understand best – other indie games.
That’s why many indie studios are now becoming publishers." The company’s own history underscores the significance of this new venture. When Journey launched in 2012, the studio faced severe financial strain, to the point where Chen told GamesIndustry.biz that the project nearly bankrupted the company and forced a wave of layoffs.
In contrast, Sky: Children of the Light, released in 2019, has become a global phenomenon, especially in China, and even inspired a feature‑film adaptation. The revenue generated by Sky now enables Thatgamecompany to fund what it describes as "emotionally ambitious" games, a category that aligns with its artistic philosophy. Chen also notes how the distribution landscape has shifted dramatically.
In the early 2010s, platforms like PlayStation controlled most of the distribution pipeline. Today, "the distribution network is owned by the players, who are influencers," he says.
A successful indie title can attract millions of players who become its most effective marketing channel, often outpacing traditional outlets such as GameSpot, IGN, or even Steam. This democratization of reach gives indie studios a compelling reason to step into publishing, as they can leverage their own community to promote other games. 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 broader gender reach than many of its peers. "If we showcase a game that appeals to both men and women, we can tap into a unique overlap," he explains, highlighting the potential for titles that resonate across demographics, including those who may be new to gaming. While the specific projects in Thatgamepublisher’s pipeline remain under wraps, the publisher has already signed a "couple" of games.
In its launch statement, Chen articulated the vision: "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 bring those visions to life." SJ Xue, Thatgamecompany’s vice‑president of growth and corporate development and the leader of the publishing initiative, elaborated on the type of projects the studio seeks. He emphasized that genre, platform, or team size are secondary to the emotional impact of a game.
"We’re open to any team, any stage of development, even prototypes," Xue says. "What matters is whether the experience stays with someone after the screen goes dark.
If a game strives for that lingering resonance, we want to talk." Unlike many indie publishers that focus on sub‑million‑dollar budgets, Thatgamepublisher is prepared to back larger, AA‑scale endeavors. Xue explains that the terms of each deal – including revenue share and recoup structures – will be tailored to the needs of the individual project.
"As developers ourselves, we understand the importance of fair, transparent, and developer‑friendly partnerships," he notes. Thatgamepublisher is positioning itself as a full‑service publisher, offering funding, production planning, platform strategy, marketing, community management, and long‑term IP development. This contrasts with other indie publishers such as Outersloth or Evil Landfall, which often adopt a modular, funding‑only approach. Luke Keighran of Silver Lining Interactive observed that "the old school publishing model is dead," and that modern developers prefer to pick and choose the services they need – whether it’s marketing, console porting, or financing.
Xue affirms that Thatgamepublisher can provide flexible, modular arrangements but stresses that emotionally ambitious projects often benefit from an integrated partnership. By being involved across creative development, production, positioning, marketing, and community strategy, the publisher aims to protect the game's emotional core and guide it from concept to player. Ultimately, the company’s philosophy rests on the belief that games can forge deep, shared emotional experiences. Chen reflects, "That belief has shaped everything we’ve made, from Flow and Flower to Journey and Sky.
We know the path is larger than a single studio. Creators around the world are pushing the boundaries of what games can make us feel, and we want to help those ideas reach players." He adds that emotionally ambitious games often require a different playbook, one that allows the heart of the project to emerge through iteration and conversation. Thatgamepublisher aims to provide the resources, infrastructure, and caring oversight necessary to nurture that process, drawing on the studio’s own experience running Sky: Children of the Light – a live‑service title with over 300 million downloads and seven years of global operation.
By understanding each game's emotional truth and building from its community, the publisher hopes to amplify reach while preserving the core feeling that makes each experience unique.