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 reflects a broader industry pattern where successful indie studios leverage their newfound financial stability to nurture other independent developers.
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. Jenova Chen, co‑founder of Thatgamecompany, explains the rationale behind this trend: "When an indie game that was made on a shoestring budget becomes a breakout success, you suddenly have excess cash. Yet you don’t necessarily want to balloon your own studio into a thousand‑person operation.
The logical place to invest that capital is in something you understand deeply – other indie games. That’s why many indie studios are turning into publishers." The financial landscape was very different when Journey launched in 2012.
Chen has recounted that the project nearly pushed the studio to bankruptcy, resulting in a mass layoff of staff. Fast‑forward to today, 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 provides Thatgamecompany with the means to fund what it calls "emotionally ambitious" games, targeting budgets that can reach AA levels. Chen also notes a shift in distribution dynamics. In the early 2010s, platforms like PlayStation controlled the primary channels for reaching players.
"Now the distribution network belongs to the players themselves – they are the influencers," he says. A successful indie title can amass millions of fans who become organic promoters, often wielding more sway than traditional media outlets such as GameSpot, IGN, or even Steam. This democratized reach encourages indie studios to step into publishing roles, leveraging their community as a distribution engine. Another distinctive advantage for Thatgamecompany is its audience composition.
Roughly 70 % of Sky’s player base is female, giving the studio a broader gender reach than many of its peers. "When we highlight a game that appeals to both men and women, we tap into a unique overlap because many of our players are newcomers to gaming," Chen adds.
While the exact slate of titles under Thatgamepublisher remains under wraps, Chen shared the publisher’s guiding philosophy in a press release: "When we first began making games, many doubted whether interactive experiences could move people as profoundly as film, literature, or music. Over the years, games have proven their capacity to forge lifelong friendships, heal personal struggles, reconnect loved ones, and restore hope.
Those moments convinced us that games can touch lives in deep, meaningful 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 effort, emphasizes that the studio is searching for games that "move people through play." He stresses that genre, platform, or team size are not primary concerns. "We are open to any team, any stage of development, even prototypes, as long as the project strives for meaningful emotional territory and uses interactivity to reach it," Xue explains. "Emotional can mean joy, chaos, humor—any feeling that lingers after the screen goes dark.
If a game pursues that, we want to talk." Unlike many indie publishers that focus on sub‑million‑dollar budgets, Thatgamepublisher is prepared to back larger endeavors. Xue notes, "We are flexible with funding and project scale. Whether you are a solo creator with a brilliant concept or a larger studio aiming for a AA‑level budget, we’re interested." The terms of each publishing deal will be tailored to the individual project. Xue says, "As developers ourselves, we understand the importance of fair, transparent, and developer‑friendly partnerships.
We’ll adjust recoup percentages and other conditions to suit each team’s needs." 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 contrasts with publishers like Outersloth or Evil Landfall, which often provide funding only. The industry is moving toward modular publishing models, allowing developers to pick and choose services. Luke Keighran of Silver Lining Interactive summed it up: "The old‑school publishing model is dead; today developers select the exact support they need, be it marketing, console ports, or funding." Xue confirms that Thatgamepublisher can adopt a modular approach when required, but he believes many emotionally driven projects benefit from an integrated partnership.
"Creative development, production, positioning, marketing, community, and platform strategy are tightly linked for these games. Being involved across the board lets us protect the emotional core and guide the team from concept to player." Ultimately, the publisher’s mission is rooted in the belief that games can forge shared emotional experiences and bring out the best in people.
Chen reflects, "That belief shaped everything we made—from Flow and Flower to Journey and Sky. Yet the journey is bigger than a single studio. Creators worldwide are pushing the emotional boundaries of the medium, and we want to help their ideas reach players." He adds, "Emotionally ambitious games often need a different playbook.
Their heart may not be obvious at the start; it emerges through prototyping, iteration, quiet discovery, and the right conversations. Our role is to safeguard that process, giving developers space, guidance, and alignment to uncover the strongest version of their work." Drawing on their experience running Sky: Children of the Light—a live‑service title with over 300 million downloads and seven years of global operation—Thatgamecompany knows how to scale deeply felt experiences without diluting their impact. "By understanding each game's emotional truth, building from its community, and allowing genuine resonance to drive scale, we aim to help every project reach farther while staying true to its heart," Xue concludes.