Thatgamecompany, the creative force behind acclaimed titles such as Flow, Flower, Journey, and 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 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 back games like Clickolding and The Horror at Highrook; Kinetic Games, the studio behind Phasmophobia, which started Kinetic Publishing and now supports projects such as Precognition from Sam Barlow; Pocketpair, known for Palworld, which introduced Pocketpair Publishing; and Landfall Games, the team behind Peak, which formed the Evil Landfall label. The trend reflects a desire among small studios to reinvest surplus earnings back 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." The financial landscape was dramatically different when Journey launched in 2012. Chen has recounted that the development of Journey nearly bankrupted the studio, leading to a wave of layoffs.
The situation has since reversed. Sky: Children of the Light, released in 2019, has become a global phenomenon, especially in the Chinese market, and even inspired a feature‑film adaptation. The revenue generated by Sky now provides Thatgamecompany with the capital to pursue what Chen describes as "emotionally ambitious games." Chen also notes a shift in how games reach audiences. 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 successful indie title can amass millions of players who act as organic promoters, often eclipsing traditional media outlets like GameSpot, IGN, or even Steam in terms of reach. This democratization of distribution gives indie studios both the incentive and the means to become publishers themselves.
Another distinctive advantage for Thatgamecompany is its demographic profile. Chen points out that roughly 70% of Sky's player base is female, giving the studio a broader gender reach than most developers. "If we promote a game that appeals equally to men and women, our audience offers a unique overlap because many of our players are newcomers to gaming," he explains.
While the specific titles in Thatgamepublisher's initial slate remain under wraps, Chen shared the publisher's guiding philosophy in a press release: "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, restored hope. Those moments convinced us that games are capable of touching 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 leader of the publishing initiative, elaborated on the types of projects the new label seeks. He emphasized that the company is not bound by genre, platform, or size constraints.
"We are open to teams of any size, projects at any stage, and ideas still being prototyped. What matters is not the label, genre, scale, or format, but whether the game reaches for meaningful emotional territory and uses interactivity to take players there," Xue said. He added that "emotional" can encompass joy, chaos, humor, or melancholy, but the core question remains: "Will this stay with someone after the screen goes dark?" Unlike many indie publishers that focus primarily on sub‑million‑dollar budgets, Thatgamepublisher is prepared to back larger, AA‑level projects. Xue explained that the publisher's funding model is flexible: "We are quite flexible when it comes to funding and project scale.
We are open to working with everyone from solo developers with immense creativity to larger teams with AA‑level budgets." The terms of each publishing deal will be tailored to the individual project's needs. Xue highlighted that, as developers themselves, the team understands the importance of fair, transparent, and developer‑friendly partnerships. This philosophy extends to the range of services Thatgamepublisher offers.
The label will operate as a full‑service publisher, providing not only capital but also production planning, platform strategy, marketing, community management, and long‑term IP development. This contrasts with publishers like Outersloth or Evil Landfall, which have adopted a funding‑only or modular approach. Industry commentator Luke Keighran, founder of Silver Lining Interactive, has observed 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, console conversion assistance, or full‑scale production support.
Xue reiterated that Thatgamepublisher can adapt its involvement based on a developer's requirements, offering modular arrangements for funding, marketing, or other specific support. However, for projects with a strong emotional core, the publisher believes an integrated partnership yields the best results.
By staying involved across creative development, production, positioning, marketing, community, and platform strategy, the publisher aims to protect the game's emotional essence and help the team deliver that vision to players. The overarching rationale for developers to partner with Thatgamepublisher lies in the studio's founding belief: games have the power to connect people through shared emotional experiences and bring out the best in humanity. Chen summed up this ethos, noting that it has shaped every title from Flow and Flower to Journey and Sky. He added that while Thatgamecompany's own journey has shown the value of emotionally ambitious games, the studio recognizes that the creative frontier extends far beyond its own work.
By offering resources, infrastructure, and a caring, full‑service approach, Thatgamepublisher hopes to nurture a new generation of games that resonate deeply with audiences worldwide. In summary, Thatgamepublisher represents a strategic evolution for Thatgamecompany, leveraging the commercial success of Sky to fund and support indie creators who aim to craft experiences that linger in players' hearts long after the final frame. With flexible funding, comprehensive services, and a clear emotional mission, the new label positions itself as a compelling partner for developers seeking to push the boundaries of interactive storytelling.