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 named Thatgamepublisher. This move aligns the studio with a growing pattern among successful independent developers who, after scoring a breakout hit, choose to leverage their newfound resources to support other indie creators.
Notable examples include Innersloth, the minds behind Among Us, which launched Outersloth in 2024 to back games like Clickolding and The Horror at Highrook; Kinetic Games, the studio behind Phasmophobia, which started Kinetic Publishing and has already signed titles such as Precognition from Sam Barlow; Pocketpair, known for Palworld, which now runs Pocketpair Publishing; and Landfall Games, the creators of Peak, which introduced the Evil Landfall label. The trend reflects a broader shift in the industry where developers with surplus capital prefer to reinvest in projects that share their artistic vision rather than simply scaling their own teams. Jenova Chen, co‑founder of Thatgamecompany, explains the rationale behind the new venture: "Successful indie games often start on a shoestring budget.
When a title takes off, you suddenly have cash you didn't anticipate, but you also don't want to turn a small, tightly‑knit studio into a massive corporation. The most natural way to use that money is to fund other indie projects that you understand and care about.
That's why many indie studios are becoming publishers." Chen recalls that the studio faced a financial crisis after releasing Journey in 2012. The game's development nearly bankrupted the company and resulted in a wave of layoffs, a stark contrast to the current situation where Sky: Children of the Light has generated substantial revenue, especially in the Chinese market, and even inspired a feature film. The profits from Sky now give Thatgamecompany the flexibility to invest in what it calls "emotionally ambitious games." Beyond financial capacity, Chen highlights a fundamental change in how games reach audiences. In the era of Journey, distribution channels were dominated by platform holders like PlayStation.
Today, the distribution network belongs to the players themselves, who act as influencers and word‑of‑mouth marketers. "A successful indie title can amass millions of players who become its most powerful distribution engine," Chen says. "When you have an audience that loves a certain type of experience, you can directly connect them with new games that fit that taste, often more effectively than traditional media outlets." Thatgamecompany also points to its unique demographic reach.
Roughly 70% of Sky's player base is female, giving the studio a broader gender balance than many competitors. Chen believes this creates a valuable overlap for games that aim to appeal to both men and women, especially those who may be new to gaming altogether. "When we promote a title that resonates across genders, we can tap into a community that hasn't traditionally been served by mainstream games," he notes. While the specific titles under Thatgamepublisher's banner remain under wraps, the publisher has already signed a "couple" of projects.
In a press release, Chen articulated the publisher's mission: "When we first began making games, many doubted whether interactive experiences could move players as deeply as film, literature, or music. Over the years, games have proven their capacity to 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 them bring those visions to life." SJ Xue, Thatgamecompany's vice president of growth and corporate development and the lead for the publishing initiative, elaborated on the types of projects the studio is seeking. "We are looking for games that move people through play," Xue told GamesIndustry.biz.
"Genre, platform, or label doesn't matter. What matters is whether the game reaches for meaningful emotional territory and uses interactivity to guide players there." According to Xue, "emotional" can encompass joy, chaos, humor, or any feeling that lingers after the screen goes dark. The publisher is open to teams of any size, from solo developers with bold ideas to larger studios capable of handling AA‑level budgets.
This flexibility distinguishes Thatgamepublisher from many indie publishers that focus primarily on sub‑million‑dollar projects. Xue emphasized that the terms of each deal—such as revenue share and recoupment—will be tailored to the specific needs of the developer, reflecting the studio's own experience as creators who value fair, transparent, and developer‑friendly partnerships.
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 other indie publishers like Outersloth or Evil Landfall, which often adopt a modular, funding‑only model. Luke Keighran, founder of Silver Lining Interactive, recently observed that "the old school publishing model is dead; developers now pick and choose the services they need, whether that's marketing, console conversion assistance, or full‑scale funding." Xue reiterated that Thatgamepublisher can provide modular arrangements as well, but believes that emotionally ambitious projects benefit from an integrated partnership.
By staying involved across creative development, production, positioning, marketing, community building, and platform strategy, the publisher aims to protect the emotional core of each game and help the team bring that vision to a broad audience. The overarching philosophy driving the new venture is simple: games have the power to connect people through shared emotional experiences and bring out the best in humanity.
Chen summed it up, stating that this belief has shaped every title Thatgamecompany has produced, from Flow and Flower to Journey and Sky. He added that the studio now wants to amplify that impact by supporting creators worldwide who are pushing the boundaries of what games can make people feel. In practical terms, Thatgamepublisher will leverage the studio's extensive experience running Sky: Children of the Light as a live‑service title with over 300 million downloads and seven years of global operation. This expertise informs the publisher's approach to scaling emotionally resonant games without diluting their core feeling.
By understanding each project's emotional truth, building community around it, and allowing genuine resonance to drive growth, Thatgamepublisher aims to help indie developers reach larger audiences while staying true to the heart of their creations. In summary, Thatgamecompany's launch of Thatgamepublisher marks a significant expansion from a single‑studio developer to a full‑service indie publisher focused on emotionally rich experiences.
With flexible funding options, a willingness to support projects of varying scales, and a deep commitment to preserving the artistic integrity of each game, the new label positions itself as a catalyst for the next generation of games that aim to move players long after the console is turned off.