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 mirrors a broader industry pattern where independent studios that have scored a breakout success begin to diversify into publishing or funding roles to nurture other indie projects.
Recent 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, known for Phasmophobia, which started Kinetic Publishing and is already supporting titles such as Precognition from Sam Barlow’s Immortality team; Pocketpair, the studio behind Palworld, which has opened Pocketpair Publishing; and Landfall Games, the developers of Peak, which introduced the Evil Landfall label. The trend reflects a growing belief that studios with a proven hit can leverage their resources and expertise to help other developers bring unique experiences to market.
"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," explained 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 reality was stark when Journey launched in 2012. Chen has recounted that the project nearly drove the studio to bankruptcy, resulting in a wave of layoffs.
However, the landscape has shifted dramatically since then. Sky: Children of the Light, released in 2019, has become a global phenomenon—especially in China—and even inspired a feature film. The game's sustained revenue now gives Thatgamecompany the capacity to allocate profits toward what Chen describes as "emotionally ambitious games." Beyond the money, the distribution environment has transformed.
In the early 2010s, platforms like PlayStation controlled the primary channels for indie releases. Today, Chen notes, "the distribution network is owned by the players, who are influencers." A successful indie title can amass millions of players who act as organic promoters, often wielding more sway than traditional media outlets such as GameSpot, IGN, or even Steam itself.
This democratization of reach means indie studios can more readily become publishers, leveraging their own community to amplify new releases. Another distinctive advantage for Thatgamecompany lies in its audience demographics. Chen points out that roughly 70 % of Sky’s player base is female—a ratio that surpasses most other game companies. "We have a much bigger female audience reach than most of the game companies in the world," he said.
"If we promote a game that appeals to both men and women, our audience provides a unique overlap, because many of our players have never played games before." While Thatgamepublisher has already signed a "couple" of projects, the titles remain under wraps. In a press release, Chen articulated the publisher’s guiding 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 lead for the publishing initiative, told GamesIndustry.biz that the studio is searching for titles that "move people through play." He emphasized that genre, platform, or team size are not primary filters. "We are open to teams of any size, projects at any stage, and ideas still being prototyped. What matters is not the label, genre, scale, or format, but whether the game reaches for meaningful emotional territory and uses interactivity to take players there," Xue explained.
He added that "emotional" can manifest in many ways—joy, chaos, humor—but the core question remains: "Will this stay with someone after the screen goes dark? If a game is chasing that, we want to have the conversation." Where many indie publishers focus on sub‑million‑dollar budgets, Thatgamepublisher is prepared to support larger endeavors.
Xue noted the flexibility of their funding model, stating that they are willing to work with solo creators as well as teams pursuing AA‑level budgets. The specifics of each publishing agreement, including revenue splits and recoup terms, will be tailored to the needs of the individual project. "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 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 some newer indie publishers that adopt a modular, funding‑only approach. Luke Keighran, founder of Silver Lining Interactive, has observed that "the old school publishing model is dead" and that developers now pick and choose the services they require—whether it’s marketing, console porting, or full‑scale production support. Xue reiterated that Thatgamepublisher can adapt its involvement based on each project's unique demands, providing modular options for funding, marketing, or other targeted assistance.
However, he also argued that emotionally ambitious projects often benefit from a more integrated partnership, where creative development, production, positioning, marketing, community engagement, and platform strategy are tightly coordinated. "Being involved across those areas allows us to bring the most value, protect the emotional core of the game, and help the team carry that vision all the way to players," he said.
The ultimate promise of Thatgamepublisher is rooted in the studio’s founding belief: games have the power to connect people through shared emotional experiences. Chen summed it up, noting that this conviction has guided everything from Flow and Flower to Journey and Sky. "We learned from our own work that emotionally ambitious games often need a different playbook. The heart of a project is not always easy to define at the beginning.
It can emerge through prototypes, iteration, quiet discoveries, and the right creative conversations. Our role is to help protect that process, giving developers the room, guidance, and alignment they need to discover the strongest version of their work." With more than 300 million downloads of Sky: Children of the Light and seven years of operating a live‑service title worldwide, Thatgamecompany brings a wealth of experience in scaling emotionally resonant experiences without diluting their impact. By focusing on the emotional truth of each game, nurturing its community, and allowing genuine resonance to drive growth, Thatgamepublisher aims to help every partner project reach a broader audience while staying true to the feeling at its heart.