Thatgamecompany, the acclaimed creator of 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, begin to support other independent projects through publishing or funding arms. Notable examples include Innersloth, the makers 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 now carries titles such as Precognition from Sam Barlow; Pocketpair, the developers of Palworld, which introduced Pocketpair Publishing; and Landfall Games, the creators of Peak, which formed the Evil Landfall label. The trend reflects a desire among small teams to reinvest surplus revenue into the broader indie ecosystem.
Jenova Chen, co‑founder of Thatgamecompany, explained the logic behind the shift: "When an indie game that was built on a shoestring budget becomes a massive hit, you suddenly have a lot of cash on hand. Yet, you don't want to turn your tight‑knit studio into a thousand‑person corporation.
The sensible place to allocate that money is into something you understand—other indie games. That's why many indie studios are becoming publishers." The financial reality was stark when Journey launched in 2012. Chen has recounted that the game's development nearly pushed the studio to bankruptcy and resulted in a wave of layoffs. In contrast, Sky: Children of the Light, released in 2019, has generated substantial revenue, especially in the Chinese market, and even inspired a feature‑film adaptation.
Those profits now give Thatgamecompany the runway to back what it calls "emotionally ambitious" games. Chen also highlighted how the distribution landscape has evolved. In the early 2010s, platforms like PlayStation controlled the primary channels for reaching players. Today, the distribution power rests largely with the players themselves, who act as influencers and word‑of‑mouth marketers.
A successful indie title can amass millions of dedicated fans who become the most effective promotional engine, often surpassing traditional media outlets such as GameSpot, IGN, or even Steam. Another distinctive advantage for Thatgamecompany is its audience composition. Roughly 70% of Sky's player base is female, giving the studio a reach into a demographic that many other developers struggle to engage.
Chen believes this creates a unique overlap: "If we highlight a game that appeals equally to men and women, we can introduce many of our players—some of whom have never played games before—to new experiences." While specific titles under Thatgamepublisher have not been disclosed, the publisher's mission statement, released in a press announcement, underscores a commitment to games that move players on a deep emotional level. "When we first began making games, many questioned whether interactive experiences could affect people as profoundly as film, literature, or music. Over the years, we have seen games 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," the statement reads.
SJ Xue, Thatgamecompany's vice‑president of growth and corporate development and the leader of the publishing initiative, told GamesIndustry.biz that the studio is seeking projects that "move people through play" regardless of genre, platform, or development stage. "We are open to any team size, from solo creators with a spark of imagination to larger groups capable of AA‑level budgets.
What matters is whether the game reaches for meaningful emotional territory and uses interactivity to take players there," Xue explained. He added that "emotional" can encompass joy, chaos, humor, or melancholy, but the common thread is lasting impact: "Will the experience stay with someone after the screen goes dark? If a game strives for that, we want to talk." Unlike many indie publishers that limit themselves to sub‑million‑dollar budgets, Thatgamepublisher is prepared to fund larger undertakings.
Xue emphasized flexibility in both financing and partnership terms, noting that revenue‑share structures will be tailored to each project's needs. "As developers ourselves, we understand the importance of fair, transparent, and developer‑friendly deals that give teams the support they need to realize the strongest version of their game," he said.
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 adopt a funding‑only model. Industry observers such as Luke Keighran of Silver Lining Interactive have pointed out that the traditional publishing model is dying, replaced by modular services where developers pick and choose the support they require. Xue reiterated that Thatgamepublisher can provide modular arrangements, but for projects with an emotional core, a more integrated partnership often yields the best results.
"Creative development, production, positioning, marketing, community, and platform strategy are deeply interconnected for emotionally ambitious games. Being involved across those areas lets us protect the game's heart and guide the team from concept to player." The overarching philosophy driving the new venture is simple: games have the power to connect people through shared emotional experiences.
Chen reflected that this belief has shaped every title from Flow and Flower to Journey and Sky. "We have learned that emotionally ambitious games often need a different playbook. The heart of a project may emerge through prototypes, iteration, quiet discoveries, 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," he said. Drawing on seven years of operating Sky: Children of the Light as a live‑service experience with over 300 million downloads, Thatgamecompany claims it understands how to scale heartfelt experiences without diluting their impact.
"By grasping each game's emotional truth, building from its community, and allowing genuine resonance to drive growth, we aim to help every project reach farther while staying true to the feeling at its core," Xue concluded.