Thatgamecompany, the creative force behind acclaimed titles such as Flow, Flower, Journey, and the more recent Sky: Children of the Light, has announced the formation of a new publishing division named Thatgamepublisher. This move reflects a growing pattern in the independent game sector where studios that have scored a breakout hit use their newfound resources to support and fund other indie developers.
Recent examples include Innersloth, the creators of Among Us, which started Outersloth in 2024 to back games like Clickolding and The Horror at Highrook; Kinetic Games, known for Phasmophobia, which launched Kinetic Publishing and now backs titles such as Precognition from Sam Barlow; Pocketpair, the team behind Palworld, which has begun Pocketpair Publishing; and Landfall Games, the studio behind Peak, which introduced the Evil Landfall label. The trend illustrates how success can be leveraged into a broader ecosystem of support for smaller creators. Jenova Chen, co‑founder of Thatgamecompany, explains the logic behind the shift: "When an indie game that was built on a shoestring budget becomes a massive hit, you suddenly have a surplus of cash. But you don’t necessarily want to transform your lean, tight‑knit team into a thousand‑person corporation.
The sensible place to invest that money is in projects you understand and care about – other indie games. That's why many indie studios are moving into publishing." The financial reality was starkly different when Journey launched in 2012.
Chen has recounted to GamesIndustry.biz that the development of Journey nearly pushed the studio to the brink of bankruptcy, resulting in a wave of layoffs. In contrast, Sky: Children of the Light, released in 2019, has become a global phenomenon, especially in the Chinese market, and even inspired a feature film. The revenue generated by Sky now enables Thatgamecompany to allocate funds toward what it calls "emotionally ambitious games," projects that aim to touch players on a deeper level.
Chen also notes a shift in distribution dynamics. In the era of Journey, platforms like PlayStation controlled the channels through which games reached audiences. Today, the distribution network is effectively owned by 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 powerful promotional engine, often surpassing traditional media outlets such as GameSpot, IGN, or even Steam in reach. Another unique advantage Thatgamecompany brings to the table is its demographic profile. Chen points out that the studio enjoys a considerably higher female audience than most game companies, with roughly 70 percent of Sky's player base identifying as women. This gender‑balanced community offers an unusual overlap: games that appeal to both men and women can find a receptive audience among players who may be new to gaming altogether.
While the roster of titles under Thatgamepublisher has not yet been disclosed, Chen shared the publisher's philosophical foundation in a press release. He reflected on the early skepticism that interactive experiences could ever move people as profoundly as film, literature, or music.
Over the years, games have demonstrated their capacity to forge lifelong friendships, aid personal healing, 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, emphasized that the label is searching for games that "move people through play." He clarified that genre, platform, or team size are not decisive factors.
"We are open to any project, whether it is a prototype in early development or a near‑complete product. What matters is whether the experience reaches for meaningful emotional territory and uses interactivity to carry the player there," Xue said. According to Xue, emotional impact can take many forms—joy, chaos, humor—but the common thread is lasting resonance: "Will this stay with someone after the screen goes dark?
If a game strives for that, we want to talk." Where many indie publishers concentrate on sub‑million‑dollar projects, Thatgamepublisher signals its willingness to back larger, AA‑scale endeavors. Xue explained that the publisher's funding model is flexible, accommodating solo creators with boundless imagination as well as larger teams with more substantial budgets. The specifics of each deal, such as revenue share and recoupment percentages, will be tailored to the needs of the individual project, reflecting the studio's own experience as developers who value fair and transparent partnerships. Thatgamepublisher positions itself as a full‑service publisher, offering not only capital but also production planning, platform strategy, launch support, marketing, community management, and long‑term IP development.
This contrasts with other indie publishers like Outersloth or Evil Landfall, which often adopt a funding‑only approach. The industry is moving toward modular publishing models, where developers can pick and choose the services they require. Luke Keighran of Silver Lining Interactive has remarked that the traditional publishing model is effectively dead, replaced by a flexible ecosystem that lets creators select marketing, console conversion assistance, funding, or any combination thereof. Xue reiterated that Thatgamepublisher can adapt its involvement based on a project's specific needs, offering modular arrangements for funding, marketing, or other support.
However, he also highlighted that emotionally driven games often benefit from an integrated partnership, where creative development, production, positioning, marketing, community engagement, and platform strategy are tightly interwoven. By staying involved across these domains, the publisher aims to protect the game's emotional core and guide the team from concept to player. The ultimate goal, according to Xue, is to meet each project where it stands and shape the partnership around what will be most useful for the developer. He points to the studio's founding belief that games can connect people through shared emotional experiences and bring out the best in humanity.
This philosophy has informed every title Thatgamecompany has created, from the meditative Flow to the blooming Flower, the pilgrimage of Journey, and the communal sky‑bound adventure of Sky: Children of the Light. Thatgamecompany acknowledges that the path to an emotionally ambitious game is rarely linear. The heart of a project may not be obvious at the outset; it often emerges through prototyping, iteration, quiet discoveries, and collaborative dialogue.
The publisher's role is to safeguard that process, providing developers with the space, guidance, and alignment needed to uncover the strongest version of their vision. Drawing on its experience operating Sky: Children of the Light as a live‑service title with over 300 million downloads and seven years of global operation, Thatgamepublisher believes it has a proven formula for scaling heartfelt experiences without diluting their meaning.
By understanding each game's emotional truth, building from its community, and allowing genuine resonance to drive growth, the publisher aims to help projects reach broader audiences while staying true to the feelings at their core. In summary, Thatgamepublisher represents Thatgamecompany's evolution from a small indie studio into a supportive hub for creators who aspire to craft games that resonate emotionally. With flexible funding, full‑service support, and a clear commitment to preserving the artistic integrity of each project, the new label seeks to empower developers worldwide to push the emotional boundaries of interactive media.