Thatgamecompany, the creative force behind acclaimed titles such as Flow, Flower, Journey, and the widely‑played Sky: Children of the Light, has announced the creation of a new publishing division called Thatgamepublisher. This move follows a growing pattern in the indie sector where studios that have scored a breakout hit leverage their financial windfall to back other independent developers. Recent 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, the team behind Phasmophobia, which started Kinetic Publishing and is now handling titles such as Precognition from Sam Barlow; Pocketpair, known for Palworld, which opened Pocketpair Publishing; and Landfall Games, the studio behind Peak, which introduced the Evil Landfall label.
The trend reflects a broader shift: successful indie studios often find themselves with surplus capital and a desire to stay true to their small‑team ethos while still putting that money to good use. "When an indie game that was built on a shoestring budget becomes a massive hit, you suddenly have cash you didn’t anticipate," explains Jenova Chen, co‑founder of Thatgamecompany. "We’re not looking to balloon into a thousand‑person corporation; we want to invest in something we understand. Supporting other indie projects is the most natural way to allocate those resources." Thatgamecompany’s own history illustrates why the studio is cautious about rapid expansion.
The development of Journey in 2012 nearly pushed the company to the brink of bankruptcy, resulting in a wave of layoffs. However, the release of Sky: Children of the Light in 2019 dramatically altered the financial landscape.
The game has performed exceptionally well worldwide, especially in the Chinese market, and even inspired a feature film. The revenue generated now enables Thatgamecompany to channel profits into what it calls "emotionally ambitious" games—titles that aim to evoke deep feelings rather than simply deliver mechanical thrills. Chen also points out a fundamental change in how games reach audiences. In the early 2010s, distribution channels were largely controlled by platform holders such as PlayStation.
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 dedicated fans who become the most effective marketing engine, often surpassing traditional media outlets like GameSpot, IGN, or even Steam in reach.
Another unique advantage for Thatgamecompany is its demographic profile. Roughly 70 % of Sky’s player base is female, giving the studio a broader gender reach than many of its peers.
"If we highlight a game that appeals to both men and women, we can tap into an audience that includes many people who have never played a game before," Chen notes, underscoring the potential for inclusive, emotionally resonant experiences. While specific titles under Thatgamepublisher have not yet been disclosed, the publisher’s mission statement—shared in a press release—emphasizes the belief that interactive experiences can move players as profoundly as film, literature, or music. The statement reads, in part: "Games have shown us that 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 leader of the publishing initiative, elaborates on the kind of projects the studio is seeking.
"We’re not bound by genre, platform, or size. Whether a team is prototyping a concept or polishing a near‑complete product, what matters is the emotional impact—will the experience linger after the screen goes dark?" Unlike many indie publishers that limit themselves to sub‑million‑dollar budgets, Thatgamepublisher is prepared to back larger, AA‑level endeavors.
Xue explains that the financing terms will be tailored to each project's needs, with a focus on fairness, transparency, and developer‑friendly arrangements. "As developers ourselves, we understand how crucial it is to build partnerships that respect creative autonomy while providing the resources needed to realize a game’s full potential," he says. Thatgamepublisher will operate as a full‑service publisher, offering funding, production planning, platform strategy, marketing, community management, and long‑term IP development. This comprehensive approach contrasts with the more modular models adopted by peers such as Outersloth or Evil Landfall, which often provide only funding or specific services.
Luke Keighran of Silver Lining Interactive has observed that the "old school publishing model is dead," and that modern developers prefer to pick and choose the services they need. Xue acknowledges this shift, stating that Thatgamepublisher can be flexible and modular, but that emotionally driven projects often benefit from an integrated partnership covering creative development, production, positioning, and community engagement. The ultimate promise of Thatgamepublisher is rooted in the studio’s founding philosophy: games can forge shared emotional experiences and bring out the best in people. Chen reflects, "From Flow and Flower to Journey and Sky, we have always aimed to connect players on an emotional level.
Now we want to amplify that impact by supporting other creators who are exploring how games can make people feel." He adds that emotionally ambitious games frequently require a different development playbook, one that allows the core feeling to emerge through iteration, prototyping, and quiet discovery. Thatgamepublisher intends to protect that process, providing guidance, resources, and the infrastructure of a full‑service publisher while respecting the developer’s creative vision.
Drawing on the studio’s experience running Sky: Children of the Light—a live‑service title with over 300 million downloads and seven years of global operation—Thatgamepublisher believes it can help projects scale without diluting their emotional core. By understanding each game's emotional truth, nurturing its community, and allowing genuine resonance to drive growth, the publisher aims to help indie developers reach wider audiences while staying true to the feelings that make their games unique.