Thatgamecompany, the creative force behind acclaimed titles such as Flow, Flower, Journey, and Sky: Children of the Light, has announced the formation of a new publishing division named Thatgamepublisher. This move mirrors a growing pattern among successful indie studios that, after scoring a breakout hit, branch out into publishing or funding to nurture 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, known for Phasmophobia, which introduced Kinetic Publishing with projects such as Precognition by Sam Barlow; Pocketpair, the team behind Palworld, which started Pocketpair Publishing; and Landfall Games, the studio behind Peak, which unveiled the Evil Landfall label.
The trend reflects a desire to reinvest surplus revenue into the indie ecosystem. "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? With extra money you need a place to invest, and the most natural choice is something you understand—other indie games.
That's why many indie studios are doing this." When Journey launched in 2012, Thatgamecompany faced a financial crisis; Chen has recounted that the project nearly bankrupted the studio and forced a large layoff. The situation is dramatically different today. Sky: Children of the Light, released in 2019, has become a global phenomenon, especially in China, and even inspired a feature film.
The title has generated substantial profit, allowing the studio to allocate resources toward what Chen describes as "emotionally ambitious games." Chen also notes a shift in distribution dynamics. In the early 2010s, platforms such as PlayStation controlled the primary distribution channels. "Today, the distribution network is owned by the players, who are influencers," he says. A hit indie title can amass millions of players who become the most effective promoters, often surpassing traditional media outlets like GameSpot, IGN, or even Steam.
This democratized reach gives indie studios the confidence to act as publishers, leveraging their own community to amplify new releases. Another distinctive asset for Thatgamecompany is its audience composition.
"We have a much bigger female audience reach than most game companies," Chen points out, citing that roughly 70 % of Sky's player base is female. This gender balance creates a unique overlap for games that aim to appeal to both men and women, especially for titles that might attract newcomers to gaming. According to a press release, Thatgamepublisher has already signed a "couple" of projects, though details remain under wraps. Chen articulated the publisher's philosophy: "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 the impact they can have—lifelong friendships, personal healing, reconnections, renewed hope. Those moments convinced us that games can touch lives profoundly. 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 leader of the publishing initiative, elaborated on the type of projects the studio seeks.
He emphasized that the focus is not on genre, platform, or budget size but on the capacity of a game to "move people through play." Xue added, "Emotional can mean joyful, chaotic, even funny. The through line is always: will this stay with someone after the screen goes dark? If a game is chasing that, we want to have the conversation." While many indie publishers concentrate on sub‑million‑dollar budgets, Thatgamepublisher is willing to support larger, AA‑level endeavors. Xue explained that the terms of each deal—such as revenue share and recoup structures—will be tailored to the specific needs of the project.
"As developers ourselves, we understand the importance of fair, transparent, developer‑friendly partnerships that give teams the support they need to realize the strongest version of their game," he said. Thatgamepublisher is positioned as a full‑service publisher, offering funding, production planning, platform and launch 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 of Silver Lining Interactive observed that "the old school publishing model is dead" and that developers now choose which services they require—whether that be marketing, console conversion assistance, or full‑scale support. Xue reiterated that Thatgamepublisher can be "flexible depending on what a developer and project needs," providing modular arrangements for funding, marketing, or other specific support. However, he also stressed that emotionally ambitious projects often benefit from an integrated partnership, where creative development, production, positioning, marketing, community, and platform strategy are tightly aligned. "Being involved across those areas allows us to bring the most value, protect the emotional core of the game, and help the team carry that vision all the way to players," Xue said.
The underlying belief driving the new venture is that games have the power to forge shared emotional experiences and bring out the best in people. Chen summed up the studio's legacy and future outlook: "That belief has shaped everything Thatgamecompany has made, from Flow and Flower to Journey and Sky. 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." In practical terms, Thatgamepublisher aims to protect the often‑intangible "heart" of a project, offering developers the space, guidance, and resources needed to let that core emerge through prototyping, iteration, and creative dialogue.
Drawing on the experience of running Sky: Children of the Light—a live‑service title with over 300 million downloads and seven years of global operation—the team believes it can help emotionally driven games achieve scale without diluting their meaning. By understanding each game's emotional truth, building from its community, and allowing genuine resonance to drive growth, Thatgamepublisher hopes to enable indie creators to reach broader audiences while staying true to the feelings at the heart of their work.