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 mirrors a broader industry pattern where successful indie developers leverage their newfound financial muscle to become publishers or investors for other independent projects.
Recent examples include Innersloth’s Outersloth, which backed Clickolding and The Horror at Highrook; Kinetic Games’ Kinetic Publishing, home to titles like Precognition; Pocketpair’s Pocketpair Publishing; and Landfall Games’ Evil Landfall label. Jenova Chen, co‑founder of Thatgamecompany, explains the motivation behind the trend: "When an indie title that was built on a shoestring budget suddenly generates a flood of revenue, the studio faces a dilemma. Do we scale up into a massive operation, or do we find a way to channel that capital back into the indie ecosystem we understand best?" He notes that expanding the team dramatically can dilute a studio’s creative identity, so many choose to invest in fellow indie creators instead. The financial landscape was starkly different when Journey launched in 2012.
Chen has recounted that the game's development nearly bankrupted the studio, leading to a wave of layoffs. In contrast, Sky: Children of the Light, released in 2019, has become a global phenomenon—particularly in the Chinese market—and even inspired a feature film. The revenue stream from Sky now provides Thatgamecompany with the resources to fund what it calls "emotionally ambitious" games, targeting budgets that can reach AA levels.
Chen also highlights a shift in distribution dynamics. Whereas a decade ago platforms like PlayStation controlled the primary channels for indie releases, today the audience itself serves as the distribution engine. Influencers, streamers, and community leaders can amplify a game to millions of players, effectively becoming the most powerful marketing force.
"If you have a community that loves intimate, friend‑focused experiences, they will actively seek out similar titles," Chen says, emphasizing that the studio’s predominantly female player base—about 70% of Sky’s audience—offers a unique cross‑demographic reach. Thatgamepublisher has already signed a handful of projects, though details remain under wraps. In a press release, Chen articulated the publisher’s mission: "When we first started making games, many doubted that interactive experiences could move people as profoundly as film, literature, or music. Over the years, we have seen games forge lifelong friendships, heal personal struggles, reconnect families, and restore hope.
Those moments prove that games can touch lives in deeply meaningful ways. Thatgamepublisher exists to support creators worldwide who are exploring new emotional frontiers in this medium." SJ Xue, Thatgamecompany’s vice‑president of growth and corporate development and the lead for the publishing initiative, told GamesIndustry.biz that the company is seeking titles that "move people through play," regardless of genre, platform, or development stage. "We care less about the label or the scale and more about whether the experience lingers after the console is turned off," Xue explained.
He added that emotional impact can take many forms—joy, chaos, humor—and the key question is whether the game stays with the player after the screen goes dark. While many indie publishers limit themselves to sub‑million‑dollar budgets, Thatgamepublisher is willing to back larger undertakings.
Xue emphasized flexibility: "We work with solo creators who have boundless imagination as well as larger teams capable of AA‑level production. The terms of each deal—revenue share, recoup schedules, and support services—are tailored to the specific needs of the project." The studio’s own experience as developers informs a developer‑friendly approach that prioritizes transparency and fairness. Unlike some peers that operate on a funding‑only model, Thatgamepublisher will function as a full‑service publisher, offering financing, production planning, platform strategy, marketing, community management, and long‑term IP development. This comprehensive model reflects a growing industry trend toward modular publishing, where developers can pick and choose the services they need.
Luke Keighran of Silver Lining Interactive noted that "the old school publishing model is dead," and that flexibility is now the norm. Xue echoed this sentiment, stating that the publisher can adapt its involvement—whether providing just capital or a complete partnership—to suit each developer’s goals. The philosophical core of Thatgamepublisher is rooted in the belief that games are uniquely positioned to forge shared emotional experiences. Chen reflected, "From Flow and Flower to Journey and Sky, our work has always been about connecting people through feeling.
We recognize that this vision extends beyond our own studio. Creators around the world are pushing the boundaries of what games can make us feel, and we want to help bring those visions to a wider audience." He further explained how the publisher plans to nurture emotionally driven projects: "Such games often evolve through prototypes, quiet iteration, and unexpected discoveries. Our role is to protect that creative process, offering guidance and resources without stifling the organic growth of the idea." Drawing on the operational expertise gained from running Sky as a live‑service experience with over 300 million downloads and seven years of global support, Thatgamecompany believes it can scale heartfelt experiences without diluting their essence. In summary, Thatgamepublisher aims to act as a bridge between passionate indie developers and the vast, player‑driven distribution channels of today.
By providing flexible funding, holistic publishing services, and a deep understanding of emotional storytelling, the new label hopes to amplify games that linger in players’ minds long after the final frame, continuing Thatgamecompany’s legacy of crafting experiences that truly move people.