Thatgamecompany, the creative force behind titles such as Flow, Flower, Journey, and the widely acclaimed Sky: Children of the Light, has announced the formation of a new publishing division called Thatgamepublisher. This move mirrors a growing pattern among successful indie developers who, after achieving a breakout hit, expand into publishing or funding to uplift other independent projects. Recent 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 now supports titles such as Precognition from Sam Barlow; Pocketpair, the studio behind Palworld, which introduced Pocketpair Publishing; and Landfall Games, the team behind Peak, which formed the Evil Landfall label.
The trend reflects a desire to reinvest profits 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‑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, Thatgamecompany was far from flush with cash.
Chen has recounted to GamesIndustry.biz that the development of Journey nearly bankrupted the studio, resulting in a mass layoff of staff. The situation has shifted dramatically since then.
Sky: Children of the Light, released in 2019, has become a massive commercial success, especially in the Chinese market, and even inspired a feature film. The revenue generated by Sky now gives Thatgamecompany the financial muscle to back what it calls "emotionally ambitious games" with budgets that can reach AA levels.
Chen also notes a fundamental change in how games reach players. In the early 2010s, distribution channels were dominated by platform holders such as Sony. "Today, the distribution network is owned by the players, who are influencers," he says. A hit indie title can amass millions of players who act as organic promoters, providing a distribution reach that can surpass traditional media outlets like GameSpot, IGN, or even Steam.
This democratization of distribution empowers indie studios to become publishers themselves, leveraging their own communities to amplify new releases. Another distinctive advantage for Thatgamecompany is its audience demographics. "We have a much bigger female audience reach than most of the game companies in the world," Chen points out, adding that roughly 70% of Sky's player base is female.
"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." Thatgamepublisher has already signed a "couple" of projects, though the titles remain under wraps. In the official press release, Chen articulated the publisher's mission: "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 head 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 players 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." While many indie publishers focus on sub‑million‑dollar projects, Thatgamepublisher is prepared to back larger endeavors. Xue explained that the publisher is "quite flexible when it comes to funding and project scale," welcoming solo creators with big ideas as well as teams capable of handling AA‑level budgets.
The financial terms—recoup percentages, revenue splits, and so forth—will be tailored to each project's specific needs. "As developers ourselves, we understand how important it is to build partnerships that are fair, transparent, and developer‑friendly, while giving teams the support they need to realise the strongest version of their game," he added. Unlike some newer indie publishers that operate on a modular, funding‑only model, Thatgamepublisher is launching as a full‑service operation. It will provide not only capital but also production planning, platform strategy, launch support, marketing, community management, and long‑term IP development.
This comprehensive approach contrasts with the more limited services offered by Outersloth or Evil Landfall, and reflects a broader industry shift away from the "old school" publishing model. Luke Keighran, founder of Silver Lining Interactive, told GamesIndustry.biz that developers now expect to pick and choose services—marketing, console ports, funding, or a complete package—rather than accept a one‑size‑fits‑all contract. Xue reiterated that Thatgamepublisher can adapt its involvement to suit each developer's needs, offering modular arrangements for funding, marketing, or other specialized support.
However, he also argued that emotionally ambitious projects often benefit from an integrated partnership. "Creative development, production, positioning, marketing, community, and platform strategy are often deeply interconnected. 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," he said.
The overarching philosophy driving the new label is simple: games have the power to connect people through shared emotional experiences. Xue highlighted that this belief has shaped every Thatgamecompany title—from the meditative Flow and the delicate Flower to the pilgrimage-like Journey and the communal Sky.
He noted that the studio's own experience running Sky as a live‑service emotional game, now boasting over 300 million downloads and seven years of global operation, provides a proven template for scaling heartfelt experiences without diluting their impact. In Xue's words, the goal of Thatgamepublisher is to understand each game's emotional truth, nurture its community, and let genuine resonance drive growth over time. By offering resources, infrastructure, and a caring partnership, the publisher aims to help indie creators reach broader audiences while staying true to the feelings at the heart of their work.