Thatgamecompany, the acclaimed creator of titles such as Flow, Flower, Journey, and Sky: Children of the Light, has announced the formation of a new publishing division called Thatgamepublisher. This move follows a growing pattern among successful independent studios that, after achieving a breakout hit, begin to leverage their resources to support other indie developers.
Recent examples include Innersloth, the team behind Among Us, which launched Outersloth in 2024 to fund games like Clickolding and The Horror at Highrook; Kinetic Games, known for Phasmophobia, which started Kinetic Publishing and is now backing projects such as Precognition from Sam Barlow; Pocketpair, the makers of Palworld, which introduced Pocketpair Publishing; and Landfall Games, the studio behind Peak, which created the Evil Landfall label. The trend reflects a desire among small studios to reinvest surplus earnings into projects that align with their creative values. "This is a very common pattern because number one, successful indie games usually are on a shoestring, and if the game becomes very successful, suddenly you have an overflow of cash," explains Jenova Chen, co‑founder of Thatgamecompany. "But then you are a small team making games, you don't want to suddenly become a thousands‑person company, right?
And then you can't really spend the money, so with additional money, where can you invest? You want to invest in something you understand, something you really are familiar with. So investing into other indie games is a natural choice for everyone, and that's why many indie companies are doing that." The financial picture was very different when Journey launched in 2012.
Chen has recounted that the project nearly bankrupted the studio and forced a mass lay‑off. However, the subsequent release of Sky: Children of the Light in 2019 turned the tide. The game has performed exceptionally well worldwide, especially in the Chinese market, and even inspired a feature‑film adaptation.
Those profits now give Thatgamecompany the bandwidth to fund what it calls "emotionally ambitious" games. Chen also points out a shift in how games reach audiences. In the early 2010s, distribution channels were dominated by platform holders like Sony.
Today, he argues, "the distribution network is owned by the players, who are influencers." A successful indie title can amass millions of dedicated fans who become its most effective marketing engine. "You have an audience who, let's say, love friendslop games, and they're looking for other friendslop games. You actually have more influence for distribution than GameSpot, than IGN, than Steam, right?
So that's why I think today indie game studios are more likely to become publishers – they also have additional distribution reach." Another distinctive asset for Thatgamecompany is its demographic reach. Roughly 70 % of Sky: Children of the Light’s player base is female, giving the studio a broader gender balance than many of its peers. Chen believes this allows the publisher to champion titles that resonate with both men and women, especially those that might attract newcomers to gaming.
Thatgamepublisher has already signed a "couple" of projects, though details remain under wraps. In a press release, Chen articulated the publisher’s philosophy: "When we first began making games, many people questioned whether interactive experiences could move players as deeply as film, literature or music.
Over the years, games have shown us what impact they can have on people. Lifelong friendships formed. Personal struggles healed.
Loved ones reconnected. Hope restored. Those moments convinced us that games are capable of touching lives in profound ways. Thatgamepublisher exists because we believe there are countless creators around the world discovering new emotional frontiers for this medium, 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, told GamesIndustry.biz that the studio is hunting for games that "move people through play." He emphasized that genre, platform, or team size are irrelevant; what matters is whether a title can linger in a player’s mind after the console is turned off.
"'Emotional' can mean many things – it can be joyful, chaotic, even funny. The through line is always, will this stay with someone after the screen goes dark?
If a game is chasing that, we want to have the conversation." While many indie publishers limit themselves to sub‑million‑dollar budgets, Thatgamepublisher is prepared to back larger undertakings. Xue explained that the company is flexible on funding and scale, willing to work with solo creators as well as teams capable of AA‑level production.
The specifics of each deal, such as revenue share, will be tailored to the individual project's needs. "As developers ourselves, we understand how important it is to build partnerships that are fair, transparent, and developer‑friendly, while giving teams the support they need to realise the strongest version of their game," he said. Thatgamepublisher is positioning itself as a full‑service partner, 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 only funding.
The industry is moving toward modular publishing models, where developers can pick and choose the services they require. Luke Keighran of Silver Lining Interactive noted that "the old school publishing model is dead" and that flexibility is now the norm. Xue reiterated that Thatgamepublisher can adapt its involvement to each project's requirements, whether that means a modular arrangement focused solely on financing or a deeper, integrated partnership covering creative development, production, positioning, and community building. He believes that emotionally driven projects benefit from such holistic support because the creative core, marketing narrative, and community engagement are tightly interwoven.
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 summed it up: "That belief has shaped everything Thatgamecompany has made, from Flow and Flower to Journey and Sky. But we also know this path is bigger than the work of one 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." By leveraging 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 aims to help new developers scale their emotionally resonant games without sacrificing the intimacy that makes them powerful.