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 reflects a growing pattern in the indie sector where studios that have scored a breakout success expand into publishing or funding roles to nurture other independent developers. 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 now supports projects such as Precognition from Sam Barlow; Pocketpair, the studio behind Palworld, which has opened Pocketpair Publishing; and Landfall Games, the team behind Peak, which introduced the Evil Landfall label. The trend underscores a shift toward studios leveraging their own financial windfalls to become custodians of the next wave of indie innovation.
Jenova Chen, co‑founder of Thatgamecompany, explains the logic behind the shift: "Successful indie games are often built on shoestring budgets. When a title suddenly generates a lot of revenue, the studio ends up with excess cash but not necessarily the desire to balloon into a large corporation. The natural question becomes—how do we put that money to good use? The answer is to invest in other indie projects that we understand and care about." He adds that this approach allows a small team to stay true to its creative roots while still contributing to the broader ecosystem.
The financial landscape was dramatically different when Journey launched in 2012. Chen has recounted that the game's development nearly pushed the studio to the brink of bankruptcy, resulting in a mass layoff of staff.
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 stream from Sky now gives Thatgamecompany the capacity to allocate funds toward what Chen calls "emotionally ambitious games"—projects that aim to move players on a deeper, more personal level. Chen also points out a fundamental change in distribution.
In the era of Journey, platforms like PlayStation controlled the primary channels for reaching gamers. Today, distribution is largely driven by the players themselves, who act as influencers and community leaders. A successful indie title can amass millions of dedicated fans who become its most effective marketing engine, often surpassing traditional media outlets such as GameSpot, IGN, or even Steam in terms of reach. Another distinctive advantage for Thatgamecompany is its audience demographic.
Chen notes that roughly 70% of Sky's player base is female, giving the studio a broader gender appeal than many of its peers. "If we highlight a game that resonates equally with men and women, we tap into a unique overlap because many of our players are newcomers to gaming," he says. While specific titles under the Thatgamepublisher banner have not yet been disclosed, the company has already signed a "couple" of projects.
In a press release, Chen articulated the publisher's mission: "When we first started making games, many doubted that interactive experiences could affect players as profoundly 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. Those moments convinced us that games can touch lives in profound ways. 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 lead of the publishing initiative, emphasizes that the studio is searching for games that "move people through play" regardless of genre, platform, or development stage.
"We are open to teams of any size, from solo creators with big ideas to larger groups capable of AA‑level budgets. The key criterion is whether the game can reach meaningful emotional territory and stay with the player after the screen goes dark," Xue explains. Unlike many indie publishers that focus solely on sub‑million‑dollar projects, Thatgamepublisher is prepared to support larger, more ambitious endeavors.
Xue says the terms of each deal—such as revenue share and recoup schedules—will be tailored to the specific needs of the developer. "As developers ourselves, we understand the importance of fair, transparent, and developer‑friendly partnerships," he notes. Thatgamepublisher is positioning itself as a full‑service publisher, offering not only funding but also production planning, platform strategy, marketing, community management, and long‑term IP development.
This contrasts with publishers like Outersloth or Evil Landfall, which primarily provide financing. The industry is moving toward modular publishing models where developers can pick and choose the services they need. Luke Keighran of Silver Lining Interactive has remarked that "the old school publishing model is dead," and that modern arrangements are more flexible and collaborative.
Xue confirms that Thatgamepublisher can adopt a modular approach when appropriate, but he believes many emotionally driven projects benefit from an integrated partnership. By being involved across creative development, production, positioning, marketing, community, and platform strategy, the publisher can protect the game's emotional core and help the team deliver their vision to players. The overarching philosophy driving the new label is the belief that games can forge deep emotional connections and bring out the best in people. Chen reflects that this conviction has shaped 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 with over 300 million downloads and seven years of global operation has taught them how to scale heartfelt experiences without diluting their impact. "By understanding each game's emotional truth, building from its community, and allowing genuine resonance to create scale over time, we aim to help every project reach farther while staying true to the feeling at its heart," Xue concludes.