Thatgamecompany, the acclaimed creator of titles such as Flow, Flower, Journey, and the recent hit Sky: Children of the Light, has announced the formation of a new publishing division named Thatgamepublisher. This move follows 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. In recent years, Innersloth, the minds behind Among Us, introduced Outersloth in 2024 to back games like Clickolding and The Horror at Highrook.
Earlier this year, Kinetic Games—known for Phasmophobia—started Kinetic Publishing, adding titles such as Precognition, the newest offering from Sam Barlow, the creator of Immortality. Pocketpair, the studio behind Palworld, rolled out Pocketpair Publishing, while Landfall Games, famous for Peak, launched the Evil Landfall label.
The trend is unmistakable: successful indie studios are leveraging their newfound capital to become champions for fellow creators. "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," explains 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." Thatgamecompany's own history illustrates why the studio is uniquely positioned for this role. When Journey launched in 2012, the project nearly bankrupted the company and forced a mass layoff.
Chen recounted to GamesIndustry.biz that the financial strain was severe, leaving the studio scrambling for survival. Fast forward to 2019, and Sky: Children of the Light has become a global phenomenon, especially in China, and even inspired a feature film. The revenue generated by Sky now gives Thatgamecompany the financial breathing room to invest in what they term "emotionally ambitious" games—projects that aim to move players on a deeper level than typical gameplay loops.
Chen also notes a shift in how games reach audiences. In the early 2010s, distribution channels were dominated by platform holders like PlayStation.
"Today, the distribution network is owned by the players, who are influencers," he says. A successful indie title can now amass millions of players who act as organic distributors, sharing experiences across social media, streaming platforms, and word‑of‑mouth. "You have an audience who love friendslop games, and they're looking for other friendslop games.
You actually have more influence for distribution than GameSpot, than IGN, than Steam, right? So that's why I think today indie game studios are more likely to become publishers – they also have additional distribution reach," Chen adds. Another distinctive advantage for Thatgamecompany is its demographic reach. Roughly 70% of Sky's player base is female, giving the studio a broader gender balance than many of its peers.
"We have a much bigger female audience reach than most of the game companies in the world," Chen says. This diverse audience can help promote titles that appeal to both men and women, and even attract people who have never played games before, creating a unique overlap of interests. Thatgamepublisher has already signed a "couple" of projects, though details remain under wraps.
In a press release, Chen outlined the publisher's ethos: "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 leader of the publishing initiative, 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 primary concerns. "The typical genre or platform restrictions would not apply to us," Xue said.
"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 elaborated on what "emotional" can encompass: joy, chaos, humor, or melancholy. The key question, he explained, is whether the experience lingers after the console is turned off. "If a game is chasing that, we want to have the conversation," he added.
While many indie publishers limit themselves to sub‑million‑dollar budgets, Thatgamepublisher is prepared to back larger endeavors. "We are quite flexible when it comes to funding and project scale," Xue noted. "We are open to working with everyone from solo developers with immense creativity to larger teams with AA‑level budgets." The specifics of each deal—such as revenue share and recoupment terms—will be tailored to the project's needs, reflecting the studio's own experience as developers who value transparent, fair partnerships.
Thatgamepublisher will operate as a full‑service publisher, offering not just capital but also production planning, platform strategy, launch support, marketing, community management, and long‑term IP development. This comprehensive approach contrasts with other indie publishers that often provide only funding. Luke Keighran, founder of Silver Lining Interactive, observed that "the old school publishing model is dead" and that modern developers prefer modular services they can pick and choose. Xue agrees, stating that Thatgamepublisher can adapt its involvement—whether modular or integrated—based on what each developer requires.
For projects with a strong emotional core, Xue believes an integrated partnership yields the best results. He explained that creative development, production, positioning, marketing, community, and platform strategy are often deeply intertwined for such games. By staying involved across these areas, Thatgamepublisher can protect the game's emotional essence and help the team bring their vision to a wide audience. The overarching philosophy behind the venture is simple: games have the power to connect people through shared emotional experiences.
Xue summarized the studio's mission: "That belief has shaped everything Thatgamecompany has made, from Flow and Flower to Journey and Sky: Children of the Light. But we also know this path is bigger than the work of one studio. Around the world, creators are exploring their own ways to expand what games can make people feel, and we want to help those ideas find their way to players." He added that emotionally ambitious games often require a different playbook. The heart of a project may not be obvious at the outset; it can emerge through prototypes, iteration, quiet discoveries, and thoughtful conversations.
Thatgamepublisher aims to safeguard that process, offering developers the space, guidance, and alignment needed to uncover the strongest version of their work. Drawing on its experience running Sky: Children of the Light—a live‑service title with over 300 million downloads and seven years of global operation—Thatgamecompany understands how to scale deeply felt experiences without diluting their impact. By focusing on the emotional truth of each game, building from its community, and allowing genuine resonance to drive growth, the studio hopes to help every partnered project reach a broader audience while staying true to its core feeling.