Thatgamecompany, the acclaimed developer behind titles such as Flow, Flower, Journey, and the recent hit Sky: Children of the Light, has announced the creation of a new publishing division called Thatgamepublisher. This move mirrors a growing pattern in the independent game sector where studios that have scored a breakout success use their newfound resources to back other creators. In recent years, Innersloth, the makers of Among Us, launched Outersloth in 2024 to fund games like Clickolding and The Horror at Highrook. Earlier this year, Kinetic Games, known for Phasmophobia, started Kinetic Publishing, adding titles such as Precognition from Sam Barlow’s Immortality team to its roster.
Pocketpair, the studio behind Palworld, introduced Pocketpair Publishing, while Landfall Games, the creators of Peak, formed the Evil Landfall label. The trend demonstrates how a single hit can transform a small studio into a mini‑publisher, providing both financial backing and industry expertise to fellow indie developers. Jenova Chen, co‑founder of Thatgamecompany, explains the logic behind the shift: “Successful indie games are often built on shoestring budgets.
When a game suddenly becomes a blockbuster, the studio ends up with a surplus of cash but not necessarily the personnel to scale up production. The natural question is where to allocate that money. Investing in other indie projects is a logical choice because it aligns with what we know best—creating experiences that touch players emotionally.” The financial landscape was very different when Journey launched in 2012. Chen has recounted to GamesIndustry.biz that the development of Journey nearly pushed the studio to the brink of bankruptcy, resulting in a wave of layoffs.
Fast forward to the present, Sky: Children of the Light, released in 2019, has become a global phenomenon, especially in the Chinese market, and even inspired a feature‑film adaptation. The revenue generated by Sky has given Thatgamecompany the breathing room to fund what it calls “emotionally ambitious games,” projects that aim to explore deeper feelings and narratives rather than merely chasing technical spectacle.
Another shift Chen points out concerns distribution. In the era of Journey, the primary channels for reaching players were controlled by platform holders such as PlayStation.
Today, the distribution network is effectively owned by the players themselves, who act as influencers and community builders. A successful indie title can amass millions of dedicated fans who become the most potent marketing engine, often surpassing traditional media outlets like GameSpot, IGN, or even Steam in terms of reach. "When you have an audience that loves a particular style of game, they actively seek out similar experiences," Chen notes. "That organic word‑of‑mouth distribution is a powerful asset for indie publishers." Thatgamecompany also highlights a distinctive demographic advantage: a large portion of Sky’s player base is female.
Roughly 70 % of Sky’s users identify as women, giving the studio a unique audience overlap that many other developers lack. Chen believes this demographic insight can help Thatgamepublisher champion titles that appeal to both men and women, especially games that might introduce new players to the medium. Although the specific titles in the inaugural slate remain under wraps, Chen shared the publisher’s overarching philosophy in a press release: "When we first began making games, many doubted whether interactive experiences could move players as deeply as film, literature, or music.
Over the years, we have witnessed games forge lifelong friendships, heal personal struggles, reconnect families, and restore hope. Those moments convinced us that games can touch lives in profound ways. 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 initiative, elaborates on the kind of projects the studio is seeking. He emphasizes that genre, platform, or team size are not decisive factors.
"What matters is whether the game reaches for meaningful emotional territory and uses interactivity to guide players there," Xue says. "'Emotional' can be joyful, chaotic, even humorous. The key question is: will this stay with someone after the screen goes dark?
If a game strives for that lasting impression, we want to talk." Unlike many indie publishers that limit themselves to sub‑million‑dollar budgets, Thatgamepublisher is prepared to back larger, AA‑level endeavors. Xue explains that the publishing deal terms—including revenue share and recoup structures—will be tailored to each project's needs. "As developers ourselves, we understand the importance of fair, transparent, and developer‑friendly partnerships," he adds.
The new label will operate as a full‑service publisher, offering not only funding but also production planning, platform strategy, marketing, community management, and long‑term IP development. This comprehensive approach contrasts with the more modular models adopted by Outersloth or Evil Landfall, which often provide only financing. Luke Keighran of Silver Lining Interactive has observed that "the old school publishing model is dead" and that today developers can pick and choose services such as console porting, marketing, or funding based on their specific needs. Xue confirms that Thatgamepublisher can adopt a similarly flexible, modular structure when required, but he also stresses that emotionally driven projects often benefit from an integrated partnership.
"Creative development, production, positioning, marketing, community, and platform strategy are deeply interconnected for these kinds of games. Being involved across those areas lets us protect the emotional core of the experience and help the team carry that vision all the way to players," he says. The ultimate goal, according to Xue, is to meet each project where it stands and shape the partnership around what will be most useful to the developer.
He points to the studio’s own founding belief: games can connect people through shared emotional experiences and bring out the best in us. This belief has guided everything Thatgamecompany has created—from Flow’s meditative flow to Flower’s poetic interaction, Journey’s communal pilgrimage, and Sky’s expansive social world.
Chen adds that while Thatgamecompany has proven that emotionally ambitious games can succeed, the scale of that success requires resources beyond a single studio. "Around the world, creators are exploring their own ways to expand what games can make people feel, and we want to help those ideas find their way to players," he says. He notes that the development of an emotionally resonant game often follows a non‑linear path, emerging through prototypes, iteration, quiet discoveries, and creative conversations.
The publisher’s role is to safeguard that process, offering room, guidance, and alignment so developers can uncover the strongest version of their work. Drawing on the experience of running Sky: Children of the Light as a live‑service title with over 300 million downloads and seven years of global operation, Thatgamepublisher believes it can help other studios scale their emotional experiences without diluting their core impact.
By understanding each game's emotional truth, building from its community, and allowing genuine resonance to create scale over time, the publisher aims to help every project reach a broader audience while staying true to the feeling at its heart. In summary, Thatgamepublisher represents a strategic evolution for Thatgamecompany: a full‑service, flexible, and emotionally focused publishing arm that seeks to empower indie developers to craft games that linger in players’ minds long after the final frame. With a track record of creating titles that have moved millions, the studio now hopes to extend that legacy by supporting a new generation of creators who share the same passion for heartfelt, transformative interactive experiences.