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 called Thatgamepublisher. This move follows a growing pattern in the indie sector where studios that have achieved breakout success leverage their newfound resources to nurture and fund other independent developers. Notable examples include Innersloth, the creators of Among Us, which launched Outersloth in 2024 to back games like Clickolding and The Horror at Highrook; Kinetic Games, known for Phasmophobia, which started Kinetic Publishing and is already handling projects such as Precognition from Sam Barlow’s Immortality team; Pocketpair, the studio behind Palworld, which introduced Pocketpair Publishing; and Landfall Games, the makers of Peak, which now operate the Evil Landfall publishing label.
The trend reflects a broader industry shift toward studios becoming both creators and curators of indie talent. Jenova Chen, co‑founder of Thatgamecompany, explains the logic behind the transition: "When an indie game that started on a shoestring budget becomes a massive success, you suddenly have a surplus of cash.
Yet, as a small team, you don’t necessarily want to balloon into a thousand‑person corporation. The sensible way to allocate that capital is to invest in areas you understand best—namely, other indie games.
That’s why many indie studios are stepping into publishing." The financial reality was starkly different when Journey launched in 2012. Chen has recounted to GamesIndustry.biz that the development of Journey pushed the studio to the brink of bankruptcy, resulting in a wave of layoffs across the company. In contrast, Sky: Children of the Light, released in 2019, has generated a steady stream of revenue, especially in the Chinese market, and even inspired a feature‑length film adaptation. Those profits now give Thatgamecompany the breathing room to fund what it calls "emotionally ambitious" projects, a phrase that captures the studio’s long‑standing focus on games that evoke deep feeling.
Chen also highlights how the distribution landscape has evolved. In the early 2010s, platforms like PlayStation controlled the primary channels for reaching gamers. Today, however, distribution is largely driven by 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 network," Chen notes. "If your audience loves a certain style of game, they’ll actively seek out similar experiences, giving you a reach that can surpass traditional media outlets like GameSpot, IGN, or even Steam." Another distinctive advantage for Thatgamecompany lies in its demographic reach. Chen points out that roughly 70 % of Sky’s player base is female, a statistic that sets the studio apart from many of its peers.
"When we highlight a game that appeals to both men and women, we tap into a unique overlap of audiences, many of whom may be new to gaming altogether," he says. While the publisher has not yet disclosed the titles it has signed, Chen shared the overarching vision in a press release: "When we first started making games, many doubted whether interactive experiences could move players as profoundly as film, literature, or music. Over the years, we’ve witnessed games forging lifelong friendships, healing personal struggles, reconnecting loved ones, and restoring hope. Those moments convinced us that games can touch lives in deeply meaningful ways.
Thatgamepublisher exists because we believe countless creators worldwide are exploring new emotional frontiers, and we want to help 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 type of projects the new label seeks. He emphasizes that genre, platform, or team size are not primary considerations. "We’re looking for games that move people through play," Xue says.
"Whether it’s a joyful, chaotic, or even humorous experience, the key question is: will this stay with someone after the screen goes dark? If the answer is yes, we want to talk." Unlike many indie publishers that restrict themselves to sub‑million‑dollar budgets, Thatgamepublisher is prepared to back larger ambitions. Xue explains that the label is flexible regarding funding levels and is open to collaborations ranging from solo developers with a singular vision to larger studios capable of handling AA‑level budgets.
The terms of each deal—such as revenue share and recoup structures—will be tailored to the specific needs of the project, reflecting the company’s developer‑first mindset. Thatgamepublisher is positioning itself as a full‑service publisher, offering not only capital but also production planning, platform strategy, launch support, marketing, community management, and long‑term intellectual‑property 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, has previously remarked that "the old school publishing model is dead" and that modern developers prefer to pick and choose the services they need—whether that’s marketing assistance, console porting, or full‑scale production support.
Xue confirms that Thatgamepublisher can accommodate both modular and integrated partnerships. For projects that demand a tightly knit collaboration across creative development, production, positioning, marketing, community engagement, and platform strategy, the label can provide a seamless, end‑to‑end solution. "Emotionally ambitious games often require a holistic approach," he says.
"Being involved across all those areas lets us protect the emotional core of the game and help the team carry that vision from concept to player." When asked why developers should consider partnering with Thatgamepublisher, Xue points to the studio’s founding philosophy: games have the power to connect people through shared emotional experiences and bring out the best in humanity. He notes that this belief has guided every title Thatgamecompany has released—from the meditative flow of Flow to the tender narrative of Journey. "We’ve learned that emotionally ambitious games often need a different playbook.
Their heart may not be obvious at the outset; it can emerge through prototyping, iteration, quiet discovery, and the right creative conversations. Our role is to safeguard that process, offering developers the space, guidance, and alignment they need to uncover the strongest version of their work." Drawing on its experience running Sky: Children of the Light as a live‑service title with over 300 million downloads and seven years of global operation, Thatgamepublisher claims to understand how to scale deeply felt experiences without diluting their impact.
"By grasping the emotional truth of each game, building from its community, and allowing genuine resonance to drive growth, we aim to help every project reach a broader audience while staying true to its core feeling," Xue concludes. In summary, Thatgamecompany’s new publishing arm represents a strategic expansion that leverages the studio’s artistic legacy, financial success, and unique audience demographics to foster a new generation of indie games that prioritize emotional depth. By offering flexible, full‑service support and a developer‑centric partnership model, Thatgamepublisher aims to become a catalyst for creators seeking to craft experiences that linger long after the console is turned off.