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 aligns the studio with a growing wave of independent developers who, after scoring a breakout success, choose to leverage their newfound resources to support and fund other indie projects. Recent examples include Innersloth, the creators of Among Us, which launched Outersloth in 2024 to back games like Clickolding and The Horror at Highrook; Kinetic Games, known for Phasmophobia, which started Kinetic Publishing and is already working with titles such as Precognition from Sam Barlow; Pocketpair, the studio behind Palworld, which opened Pocketpair Publishing; and Landfall Games, the team behind Peak, which introduced the Evil Landfall label. The pattern is clear: a successful indie title generates a cash surplus, and rather than expanding the original studio into a large corporation, founders prefer to reinvest in the ecosystem that helped them thrive.
Jenova Chen, co‑founder of Thatgamecompany, explained the rationale behind the trend: "When an indie game that was built on a shoestring budget suddenly generates a lot of revenue, the studio faces a dilemma. Do you scale up to a massive operation, or do you find a way to use that capital in a way that aligns with your core values? For us, supporting other indie creators—people who share our passion for meaningful, emotionally resonant experiences—makes the most sense." The financial reality was stark when Journey launched in 2012.
Chen has recounted that the development of Journey nearly bankrupted the studio and forced a wave of layoffs. Fast forward to the present, and the picture looks very different. Sky: Children of the Light, released in 2019, has become a global phenomenon, especially in China, and has even spawned a feature‑film adaptation. The game has amassed hundreds of millions of downloads and generated substantial profit, giving Thatgamecompany the financial breathing room to invest those earnings back into the industry.
Chen also highlighted how the distribution landscape has shifted. In the early 2010s, platforms like PlayStation controlled the primary channels for reaching players. Today, the power lies with the players themselves, who act as influencers and organic marketers. A successful indie title can now reach millions of users through word‑of‑mouth, social media, and streaming platforms, effectively becoming its own distribution engine.
"If your audience loves a particular style of game, they will actively seek out similar experiences and help spread the word," Chen noted. "That gives indie studios a distribution advantage that rivals traditional media outlets." Another unique advantage for Thatgamecompany is its demographic reach.
Chen pointed out that roughly 70% of Sky's player base is female—a proportion that exceeds most other game companies. This diverse audience offers a valuable testing ground for games that aim to appeal to both men and women, and even to people who have never played video games before. "When we showcase a title that resonates across gender lines, we tap into a community that is both passionate and under‑represented in the broader market," he said.
Thatgamepublisher has already signed a handful of projects, though the studio has kept the specifics under wraps. In a press release, Chen articulated the publisher's mission: "When we first started making games, many skeptics doubted that interactive experiences could move players as deeply 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 convinced us that games can touch lives in profound ways.
Thatgamepublisher exists to help creators around the world explore new emotional frontiers and bring those visions to life." SJ Xue, Thatgamecompany's vice‑president of growth and corporate development and the head of the publishing effort, emphasized the type of projects the new label seeks. "We are looking for games that move people through play," Xue told GamesIndustry.biz. "Genre, platform, or team size doesn't matter to us. What matters is whether the experience reaches for meaningful emotional territory and uses interactivity to carry players there." Xue elaborated on the definition of "emotional" by noting that it can be joyful, chaotic, humorous, or even unsettling.
The key question, he said, is whether the game stays with the player after the console is turned off. "If a game can linger in someone's mind, we want to talk to the creators about supporting that vision." While many indie publishers focus on sub‑million‑dollar budgets, Thatgamepublisher is prepared to fund larger, AA‑level projects as well. Xue explained that the publishing terms—such as revenue share and recoup schedules—will be tailored to each project's needs. "As developers ourselves, we understand the importance of fair, transparent, and developer‑friendly partnerships.
Our goal is to give teams the support they need to realize the strongest version of their game." The new label will operate as a full‑service publisher, offering not only capital but also assistance with production planning, platform strategy, marketing, community management, and long‑term IP development. This contrasts with some newer indie publishers that adopt a modular, funding‑only approach. Luke Keighran, founder of Silver Lining Interactive, has observed that the traditional publishing model is fading, and developers now pick and choose the services they need—whether that's marketing, console porting, or full‑scale production support.
Xue confirmed that Thatgamepublisher can adapt its involvement to suit each developer's requirements, providing modular options for funding, marketing, or other specialized support. However, he also stressed that for emotionally ambitious titles, an integrated partnership often yields the best results. "Creative development, production, positioning, marketing, community, and platform strategy are deeply interconnected for these games. By being involved across those areas, we can protect the emotional core of the experience and help the team carry that vision all the way to the player." The overarching philosophy behind the publisher is simple: games have the power to connect people through shared emotional experiences.
Xue cited the studio's own portfolio—from Flow's meditative journey to Flower's poetic exploration, from Journey's collaborative pilgrimage to Sky's expansive live‑service world—as proof that emotional design can also achieve commercial success. He added that the industry is now brimming with creators who want to push those boundaries further, and Thatgamepublisher aims to be the catalyst that brings those ideas to a global audience. "Our experience running Sky: Children of the Light, which now boasts over 300 million downloads and seven years of worldwide operation, has taught us how to scale heartfelt experiences without diluting their impact," Xue said. "By understanding each game's emotional truth, building on its community, and allowing genuine resonance to drive growth, we hope to help every project reach farther while staying true to the feeling at its heart."