Thatgamecompany, the creative force behind acclaimed titles such as Flow, Flower, Journey, and the recent hit Sky: Children of the Light, has announced the creation of a new publishing division called Thatgamepublisher. This move follows a growing pattern among independent developers who, after achieving breakout success, establish publishing arms to nurture and fund other indie 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 now supports titles such as Precognition from Sam Barlow; Pocketpair, known for Palworld, which formed Pocketpair Publishing; and Landfall Games, the team behind Peak, which introduced the Evil Landfall label. The trend reflects a broader shift in the industry where successful small studios leverage their financial windfalls to become patrons of the next generation of indie experiences.
Jenova Chen, co‑founder of Thatgamecompany, explains the motivation behind the new venture: "When an indie game that was built on a shoestring budget suddenly becomes a massive hit, you end up with a surplus of cash. Yet, you don’t want to balloon your development team into a large corporation. The logical place to invest that capital is in areas you understand best—other indie games.
It’s a natural progression for many indie studios." Thatgamecompany’s own history underscores the significance of this shift. When Journey launched in 2012, the studio faced near‑bankruptcy and was forced to lay off much of its staff. Chen recalled to GamesIndustry.biz that the project nearly drained the company’s resources.
Fast forward to 2019, Sky: Children of the Light became a global phenomenon, especially in the Chinese market, and even inspired a feature film. The revenue generated by Sky has put Thatgamecompany in a position to fund what they term "emotionally ambitious" games, a category that aligns with their artistic vision.
Chen also notes how distribution dynamics have evolved. In the era of Journey, distribution channels were dominated by platform holders such as PlayStation. Today, the distribution network is effectively owned by the players themselves, who act as influencers and organic promoters. A successful indie title can reach millions of players who become its most powerful marketing engine.
"If your audience loves a certain style of game, they will actively seek out similar experiences," Chen says. "That gives indie studios a distribution reach that can surpass traditional media outlets like GameSpot, IGN, or even Steam." Another distinctive advantage for Thatgamecompany is its demographic reach. Roughly 70 % of Sky’s player base is female, giving the studio a uniquely balanced audience compared to many other developers. Chen believes this gender‑balanced community can help promote games that appeal to both men and women, especially titles that attract players who may be new to gaming altogether.
While specific titles under Thatgamepublisher have not yet been disclosed, Chen shared the publisher’s overarching philosophy in a press release: "When we first started making games, many doubted whether interactive experiences could move people as profoundly as film, literature, or music. Over the years, we’ve seen games forge lifelong friendships, heal personal struggles, reunite families, and restore hope. Those moments convinced us that games can touch lives in deeply meaningful ways.
Thatgamepublisher exists to support creators worldwide who are exploring new emotional frontiers in this medium." SJ Xue, Thatgamecompany’s vice‑president of growth and corporate development and the lead of the publishing initiative, elaborated on the type of projects the studio is seeking. He emphasized that the publisher is not constrained by genre, platform, or team size.
"We are open to any team, any stage of development, and even prototypes, as long as the game strives for meaningful emotional impact and uses interactivity to convey that feeling," Xue explained. "Emotional can mean joy, chaos, humor—anything that stays with a player after the screen goes dark. If a game pursues that, we want to talk." Unlike many indie publishers that focus primarily on sub‑million‑dollar budgets, Thatgamepublisher is prepared to back larger, AA‑level projects.
Xue said the publisher’s funding model is flexible, ranging from solo developers with inventive concepts to larger teams requiring more substantial budgets. The specifics of each deal—such as revenue share and recoup terms—will be tailored to the needs of the individual project. "As developers ourselves, we understand the importance of fair, transparent, and developer‑friendly partnerships," Xue added.
Thatgamepublisher positions itself as a full‑service publisher, offering not only capital but also production planning, platform strategy, marketing, community management, and long‑term IP development. This comprehensive approach contrasts with other indie publishers like Outersloth or Evil Landfall, which often provide only funding. The industry is moving toward modular publishing models, where developers can select the services they need—be it marketing, console porting, or funding—without committing to a monolithic package. Luke Keighran of Silver Lining Interactive summed up the shift: "The old school publishing model is dead; today developers pick and choose the support they require." Xue reiterated that Thatgamepublisher can adapt its involvement based on each project's requirements, offering modular arrangements for funding, marketing, or other specific support.
However, he also highlighted that emotionally driven games often benefit from a more integrated partnership. "Creative development, production, positioning, marketing, community, and platform strategy are deeply interconnected for these titles.
By being involved across those areas, we can protect the emotional core of the game and help the team bring their vision to players." When asked why developers should consider partnering with Thatgamepublisher, Xue pointed to the studio’s founding belief: games have the power to connect people through shared emotional experiences and bring out the best in humanity. He noted that this philosophy has guided every Thatgamecompany title, from Flow and Flower to Journey and Sky.
"We know that emotionally ambitious games often need a different playbook. Their heart may not be obvious at the outset; it can emerge through prototypes, iteration, quiet discoveries, and the right creative conversations.
Our role is to safeguard that process, giving developers space, guidance, and alignment to uncover the strongest version of their work." Drawing on its experience running Sky: Children of the Light as a live‑service title with over 300 million downloads and seven years of global operation, Thatgamepublisher believes it understands how to scale heartfelt experiences without diluting their meaning. "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 a wider audience while staying true to its core feeling," Xue concluded. In summary, Thatgamepublisher represents Thatgamecompany’s evolution from a small indie studio into a supportive hub for creators who share their passion for emotionally resonant games.
By offering flexible funding, comprehensive services, and a deep understanding of how games can move people, the new publishing arm aims to foster a new wave of indie titles that not only entertain but also leave lasting emotional impressions on players worldwide.