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, create publishing arms to nurture other independent projects. Recent examples include Innersloth’s Outersloth, which backed Clickolding and The Horror at Highrook, Kinetic Games’ Kinetic Publishing with titles like Precognition, Pocketpair’s Pocketpair Publishing, and Landfall Games’ Evil Landfall label.
Jenova Chen, co‑founder of Thatgamecompany, explains the motivation behind the trend: "When an indie title that was built on a shoestring budget suddenly generates a flood of revenue, the team faces a dilemma. You don’t want to balloon into a massive corporation, yet you have extra capital that needs to be put to good use. The most logical place to invest is in the indie ecosystem you understand best, which is why many studios are turning to publishing." The financial picture was very different when Journey launched in 2012.
Chen has recounted that the project nearly drove the studio to 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 adaptation. The revenue generated by Sky now enables Thatgamecompany to fund what it describes as "emotionally ambitious" games, targeting budgets that can reach AA scale. Chen also notes a shift in how games reach audiences.
In the early 2010s, distribution was largely controlled by platform holders like Sony. Today, the distribution network is effectively owned by the players themselves, who act as influencers and word‑of‑mouth promoters. "A successful indie title can amass millions of fans who become its most powerful distribution channel," he says. "Those fans often look for similar experiences, giving indie studios a direct line to new customers that rivals traditional media outlets." Another distinguishing factor for Thatgamecompany is its demographic reach.
Roughly 70 percent of Sky’s player base is female, a proportion that surpasses most other game companies. Chen believes this unique audience overlap allows the studio to promote games that appeal to both men and women, especially those who may be new to gaming. While the exact slate of titles under Thatgamepublisher remains under wraps, Chen shared the publisher’s guiding philosophy in a press release: "When we first started making games, many questioned whether interactive experiences could move players as deeply as film, literature, or music. Over the years, games have proven they can 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 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 searching for games that "move people through play." He emphasized that genre, platform, or team size are not limiting factors. "We are open to any project—whether it’s a prototype, a solo effort, or a larger AA‑budget production—so long as it strives to reach meaningful emotional territory and leaves a lasting impression after the screen goes dark," Xue explained.
The publisher’s definition of "emotional" is intentionally broad. It can encompass joy, chaos, humor, or any feeling that resonates with players long after they finish the game. Xue added that the company is willing to fund projects of varying scales, from under‑$1 million indie experiments to larger AA‑level endeavors.
The terms of each deal will be customized, reflecting the studio’s own experience as developers who value fair, transparent, and developer‑friendly partnerships. Thatgamepublisher is positioning itself as a full‑service publisher, offering not only funding but also production planning, launch strategy, marketing, community management, and long‑term IP development.
This contrasts with some indie publishers that focus solely on financing. The industry is moving toward modular publishing models, where developers can pick and choose services such as console porting, marketing support, or funding. Xue acknowledges this trend but argues that emotionally driven projects often benefit from an integrated approach, where creative development, production, positioning, and community engagement are tightly aligned.
"Being involved across those areas lets us protect the emotional core of the game and help the team carry that vision all the way to players," he said. Ultimately, Thatgamepublisher aims to meet each project where it stands and shape a partnership that maximizes the developer’s strengths. The company’s core belief—that games can forge deep emotional connections and bring out the best in people—has guided every title Thatgamecompany has created, from Flow and Flower to Journey and Sky. Chen and Xue stress that this philosophy extends beyond a single studio; they want to empower creators worldwide who are exploring new ways to make players feel.
"Emotionally ambitious games often need a different playbook," Xue noted. "The heart of a project may not be obvious at the outset; it can emerge through prototypes, iteration, quiet discoveries, and the right conversations.
Our role is to protect that process, giving developers the space, guidance, and resources they need to discover the strongest version of their work." Drawing on their experience running Sky: Children of the Light—a live‑service title with over 300 million downloads and seven years of global operation—Thatgamecompany believes it can help other studios scale their emotional experiences without diluting their impact. By understanding each game's emotional truth, building from its community, and allowing genuine resonance to drive growth, Thatgamepublisher hopes to help projects reach wider audiences while staying true to the feelings at their core.