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 growing pattern in the indie sector where studios that have scored a breakout success leverage their newfound resources to become publishers or investors for other independent developers. Notable examples include Innersloth, the creators of Among Us, which launched Outersloth in 2024 to support games like Clickolding and The Horror at Highrook; Kinetic Games, known for Phasmophobia, which introduced Kinetic Publishing with a slate that features Sam Barlow’s latest, Precognition; Pocketpair, the studio behind Palworld, which started Pocketpair Publishing; and Landfall Games, the team behind Peak, which now operates the Evil Landfall label.
The trend reflects a broader shift: successful indie studios often find themselves with surplus capital after a hit, and rather than ballooning into a large corporate entity, they choose to reinvest that capital back into the ecosystem that nurtured them. Jenova Chen, co‑founder of Thatgamecompany, explains the logic behind the decision: "When an indie title takes off on a shoestring budget, the cash flow can suddenly be overwhelming. Yet we remain a small, tightly‑knit team that doesn’t want to become a massive operation overnight.
The sensible place to allocate extra funds is into areas we understand deeply—namely, other indie games. That’s why many of our peers are following the same path." The contrast between Thatgamecompany’s early days and its current standing is stark. Chen recalls that the development of Journey in 2012 nearly drove the studio to bankruptcy, forcing a near‑total staff layoff.
In the years that followed, however, Sky: Children of the Light, released in 2019, turned into a global phenomenon, especially in the Chinese market, and even inspired a feature‑film adaptation. The financial upside from Sky now enables Thatgamecompany to allocate profits toward what Chen describes as "emotionally ambitious games"—projects that aim to evoke deep, lasting feelings in players.
Chen also highlights a shift in distribution dynamics. In the era of Journey, distribution channels were dominated by platform holders like Sony’s PlayStation network. Today, the distribution power rests largely with the players themselves, who act as influencers and organic marketers.
A successful indie title can amass millions of dedicated fans, who become the most effective promotional engine—often surpassing traditional outlets like GameSpot, IGN, or even Steam in reach. This democratization of distribution gives indie studios both the incentive and the capability to act as publishers.
Another distinctive advantage for Thatgamecompany is its audience composition. Chen notes that roughly 70 % of Sky’s player base is female, giving the studio a uniquely balanced demographic compared with many other developers. "If we champion a game that appeals equally to men and women, we can tap into an audience that includes many people who have never played games before," he says, underscoring the potential for broader cultural impact. While specific titles under Thatgamepublisher remain under wraps, the publisher’s mission statement, released alongside the announcement, emphasizes a belief that interactive experiences can move people as powerfully as film, literature, or music.
The statement reads, "Games have shown us they can forge lifelong friendships, heal personal struggles, reconnect loved ones, and restore hope. Thatgamepublisher exists to help creators worldwide explore new emotional frontiers and bring those visions to life." SJ Xue, Thatgamecompany’s vice‑president of growth and corporate development and the lead for the publishing initiative, elaborates on the types of projects the new label seeks.
He stresses that genre, platform, or team size are irrelevant; what matters is whether the game can reach a meaningful emotional space and linger with players after the console is turned off. "Emotional" can encompass joy, chaos, humor, or any feeling that stays with someone once the screen goes dark. If a prototype or concept aspires to that, Xue says the publisher wants to start a conversation.
Unlike many indie publishers that limit themselves to sub‑million‑dollar budgets, Thatgamepublisher is prepared to back larger, AA‑scale endeavors. Xue explains that funding terms, including revenue splits and recoup structures, will be tailored to each project's unique needs.
"As developers ourselves, we know how crucial fair, transparent, and developer‑friendly partnerships are," he asserts. The new label 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 comprehensive approach distinguishes it from other indie publishers like Outersloth or Evil Landfall, which often adopt a modular, funding‑only model. Industry observers such as Luke Keighran of Silver Lining Interactive have noted that the traditional publishing model is dying, giving way to flexible service bundles that developers can pick and choose.
Xue reiterates that Thatgamepublisher can adapt its involvement based on what a developer requires—whether it’s just funding, marketing assistance, or a deeper partnership across creative development, production, and launch strategy. He believes that emotionally driven projects benefit from an integrated approach because the creative, technical, and promotional aspects are tightly interwoven. Ultimately, the rationale for developers to join Thatgamepublisher rests on the studio’s core philosophy: games can forge shared emotional experiences and bring out the best in people. Chen reflects that this belief has guided every title Thatgamecompany has created, from Flow and Flower to Journey and Sky.
He adds that the studio’s experience running Sky as a live‑service title with over 300 million downloads and seven years of global operation equips them with the insight to scale heartfelt experiences without diluting their essence. In Chen’s own words, "By understanding each game's emotional truth, building from its community, and allowing genuine resonance to drive scale, we aim to help every project reach farther while staying true to the feeling at its heart."