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 achieving breakout success, expand into publishing or funding to uplift other independent projects.
Notable 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, the studio behind Phasmophobia, which started Kinetic Publishing and is now supporting titles such as Precognition from Sam Barlow; Pocketpair, the makers of Palworld, which introduced Pocketpair Publishing; and Landfall Games, the developers of Peak, which created the Evil Landfall label. The trend reflects a desire to reinvest profits into the indie ecosystem. Jenova Chen, co‑founder of Thatgamecompany, explains the motivation behind the shift: "Successful indie games are often built on shoestring budgets. When a title takes off, you suddenly have a surplus of cash, but you don't want to balloon into a massive corporation.
The logical place to allocate those funds is into something you understand—other indie games. That's why many small studios are becoming publishers." When Journey launched in 2012, Thatgamecompany was far from financially comfortable; Chen has recounted that the project nearly bankrupted the studio and resulted in a round of layoffs. The landscape has altered dramatically since then. Sky: Children of the Light, released in 2019, has become a global phenomenon, especially in China, and even inspired a feature film.
The revenue generated by Sky now enables the studio to allocate resources toward what Chen describes as "emotionally ambitious" games. Chen also notes a shift in distribution dynamics.
In the era of Journey, distribution channels were dominated by platform holders like PlayStation. Today, "the distribution network belongs to the players," who act as influencers and organic marketers.
A successful indie title can attract millions of players who become its most effective distribution engine, surpassing traditional media outlets such as GameSpot, IGN, or even Steam. Another distinguishing factor 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.
Chen believes this creates a unique overlap: "If we highlight a game that appeals equally to men and women, we can introduce it to many players who may have never played games before." Thatgamepublisher has already signed a handful of projects, though details remain under wraps. In a press release, Chen articulated the publisher's ethos: "When we first started making games, many questioned whether interactive experiences could move people as deeply 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. 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 head of the publishing initiative, told GamesIndustry.biz that the company is searching for titles that "move people through play." He emphasized that genre, platform, or team size are irrelevant; what matters is whether a game can reach meaningful emotional territory and linger with players after the screen goes dark.
"Emotional" can encompass joy, chaos, humor, or any feeling that stays with the audience. While many indie publishers focus on sub‑million‑dollar projects, Thatgamepublisher is willing to support larger, AA‑scale endeavors. Xue explained that the studio is "quite flexible when it comes to funding and project scale," welcoming solo creators with big ideas as well as larger teams with more substantial budgets.
Deal terms, such as revenue share, will be tailored to each project's needs, reflecting the studio's developer‑first mindset. Unlike some peers that operate on a funding‑only model, Thatgamepublisher intends to be a full‑service publisher. It will offer financing, production planning, platform strategy, marketing, community management, and long‑term IP development.
This integrated approach aligns with the evolving publishing landscape, where developers can pick and choose services rather than accept a monolithic package. Luke Keighran of Silver Lining Interactive summed up the shift: "The old school publishing model is dead; today developers select the specific support they need, whether that's marketing, console conversion, or funding." Xue reiterated Thatgamepublisher's adaptability: "We can provide modular arrangements around funding, marketing, or other support, but for emotionally ambitious projects we often find a more integrated partnership adds the most value. Creative development, production, positioning, marketing, community, and platform strategy are deeply interconnected for these games. Being involved across those areas helps protect the emotional core and guides the team from concept to player." The publisher's core belief is that games have the power to connect people through shared emotional experiences.
This philosophy has shaped Thatgamecompany's own catalog—from the meditative flow of Flow to the delicate storytelling of Flower, the pilgrimage of Journey, and the communal sky‑bound adventure of Sky: Children of the Light. Chen and Xue argue that this vision extends beyond a single studio; creators worldwide are pushing the boundaries of what games can make us feel, and Thatgamepublisher aims to be the conduit for those ideas. According to Xue, emotionally ambitious games often require a different development playbook.
The heart of a project may not be obvious at the outset; it can emerge through prototypes, iteration, quiet discovery, and the right creative conversations. Thatgamepublisher's role is to safeguard that process, offering developers the space, guidance, and alignment needed to uncover the strongest version of their work. Drawing on the studio's experience running Sky: Children of the Light—a live‑service title with over 300 million downloads and seven years of global operation—Thatgamepublisher believes it understands how to scale deeply felt experiences without diluting their impact.
By honoring each game's emotional truth, building from its community, and allowing genuine resonance to drive growth, the publisher hopes to help every project reach a wider audience while staying true to its core feeling.