Thatgamecompany, the creative force behind titles such as Flow, Flower, Journey, and the recent hit Sky: Children of the Light, has announced the creation of a new publishing division called Thatgamepublisher. This move follows a growing pattern among successful indie developers who, after scoring a breakout title, branch out into publishing or funding to uplift other independent projects. In recent years, studios like Innersloth (the creators of Among Us) launched Outersloth in 2024, supporting games such as Clickolding and The Horror at Highrook. Earlier this year, Kinetic Games, known for Phasmophobia, started Kinetic Publishing, adding titles like Precognition—an upcoming work from Sam Barlow, the mind behind Immortality—to its roster.
Pocketpair, the team behind Palworld, introduced Pocketpair Publishing, while Landfall Games, the studio behind Peak, formed the label Evil Landfall. The trend is clear: indie studios with a hit under their belt are leveraging their newfound capital and industry insight to become patrons of the next wave of innovative games. "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 of people 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." When Journey launched in 2012, the studio was far from flush with cash. Chen has recounted to GamesIndustry.biz that the development of Journey nearly bankrupted the company and resulted in a mass lay‑off. Fast forward to 2019, Sky: Children of the Light became a global phenomenon, especially in the Chinese market, and even inspired a feature‑film adaptation.
The financial success of Sky now gives Thatgamecompany the ability to reinvest profits into what it calls "emotionally ambitious games"—projects that aim to touch players on a deeper level. Chen also notes that the distribution landscape has shifted dramatically since Journey's era.
Back then, platforms like PlayStation controlled the primary channels for reaching gamers. Today, "the distribution network is owned by the players, who are influencers," he says.
A hit indie title can amass millions of followers who become organic promoters, often out‑reaching traditional media outlets such as GameSpot, IGN, or even Steam itself. This democratization of distribution gives indie studios a compelling reason to become publishers: they already possess a built‑in audience that can serve as a powerful launchpad for new experiences. Another unique advantage for Thatgamecompany is its demographic reach. Chen points out that roughly 70% of Sky's player base is female, giving the studio a considerably larger female audience than most game companies worldwide.
"If we promote or feature a game that would be appealing to men and women equally, our audience is going to have a very unique overlap, because there are many of our players who have never played games before," he adds. Thatgamepublisher has already signed a handful of projects, though details remain under wraps. In a press release, 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 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 hunting for titles that "move people through play." He emphasized that genre, platform, or team size are irrelevant; what matters is whether a game can reach a meaningful emotional space and linger with the player after the console is turned off. "'Emotional' can mean many things—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," Xue explained.
While many indie publishers focus on sub‑million‑dollar budgets, Thatgamepublisher is prepared to back larger undertakings. Xue said the firm is "quite flexible when it comes to funding and project scale," welcoming solo creators with bold ideas as well as larger teams capable of delivering AA‑level productions. Deal terms, such as revenue share and recoupment percentages, will be tailored to each project's needs, reflecting the studio's own experience as developers who value fair, transparent, and developer‑friendly partnerships.
Thatgamepublisher will operate as a full‑service publisher, offering financing, production planning, platform strategy, marketing, community management, and long‑term IP development. This contrasts with other indie publishers like Outersloth or Evil Landfall, which often adopt a funding‑only or modular model. Luke Keighran of Silver Lining Interactive recently remarked that "the old school publishing model is dead" and that modern developers prefer to pick and choose services—whether it's marketing assistance, console port support, or full‑scale funding. Xue reiterated that Thatgamepublisher can provide modular arrangements but believes that emotionally ambitious projects often benefit from an integrated partnership.
By staying involved across creative development, production, positioning, marketing, community, and platform strategy, the publisher aims to protect the emotional core of each game and help developers bring that vision to a broad audience. Ultimately, the company hopes to attract developers who share its belief that games can forge deep emotional connections and bring out the best in people. Chen summed up the ethos: "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. By understanding the emotional truth of each game, building from its players and 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."