Thatgamecompany, the creative force behind acclaimed titles such as Flow, Flower, Journey, and the recent hit Sky: Children of the Light, has announced the creation of a new publishing division named Thatgamepublisher. This move reflects a broader industry pattern where successful independent studios leverage their financial windfalls to nurture other indie 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, known for Phasmophobia, which started Kinetic Publishing and is now supporting titles such as Precognition from Sam Barlow; Pocketpair, the studio behind Palworld, which has opened Pocketpair Publishing; and Landfall Games, the team behind Peak, which introduced the Evil Landfall label. The trend demonstrates how studios that have achieved a breakout success often transition into a hybrid role of creator and investor.
Jenova Chen, co‑founder of Thatgamecompany, explains the logic behind this shift: "When an indie game that was built on a shoestring budget becomes a massive hit, you suddenly have a surplus of cash. Yet you don’t necessarily want to balloon your own development team into a thousand‑person operation. The sensible use of those funds is to invest in projects you understand and are passionate about—namely, other indie games. That’s why many indie studios are moving into publishing." Thatgamecompany’s own financial journey was far from smooth.
The release of Journey in 2012 nearly drove the studio to bankruptcy, resulting in a wave of layoffs, as Chen recounted to GamesIndustry.biz earlier this year. In stark contrast, Sky: Children of the Light, launched in 2019, has generated extraordinary revenue, especially in the Chinese market, and even inspired a feature‑film adaptation. The success of Sky has positioned Thatgamecompany to reinvest its profits into what it describes as "emotionally ambitious games." Chen also notes a fundamental shift in how games reach audiences.
In the era of Journey, distribution channels were dominated by platform holders like PlayStation. Today, the distribution network belongs to the players themselves, who act as influencers and organic marketers. "A successful indie title can amass millions of players who become its most powerful distribution engine," Chen says. "If your community loves a certain style of game, they will actively seek out similar experiences, often more effectively than traditional media outlets like GameSpot, IGN, or even Steam." Another unique advantage Thatgamecompany brings to the table is its predominantly female player base.
Roughly 70 % of Sky’s users are women, giving the studio a demographic reach that many other developers lack. "When we showcase a game that appeals to both men and women, we tap into a highly overlapping audience, many of whom may be new to gaming altogether," Chen adds. Although the specific titles that Thatgamepublisher has already signed remain under wraps, the publisher’s mission statement, released in a press announcement, outlines a clear philosophical foundation: "When we first began making games, many questioned whether interactive experiences could move players as deeply as film, literature, or music.
Over the years, games have proven they can foster lifelong friendships, heal personal struggles, reconnect loved ones, and restore hope. Those moments convinced us that games can touch 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, emphasizes that the label is looking for projects that "move people through play." He stresses that genre, platform, or team size are irrelevant; what matters is the ability of a game to leave a lasting emotional imprint after the console is turned off. "Emotional" can encompass joy, chaos, humor, or melancholy—any experience that lingers in the player’s mind. Unlike many indie publishers that focus on sub‑million‑dollar budgets, Thatgamepublisher is prepared to fund larger, AA‑scale endeavors.
Xue explains that the studio is flexible regarding both funding amount and project scope, welcoming solo creators with big ideas as well as larger teams seeking substantial backing. The terms of each publishing deal—such as revenue share and recoupment percentages—will be tailored to the specific needs of the project, reflecting the company’s developer‑first mindset.
Thatgamepublisher will operate as a full‑service publisher, offering not only capital but also production planning, platform strategy, marketing, community management, and long‑term intellectual‑property development. This comprehensive approach distinguishes it from other indie publishers like Outersloth or Evil Landfall, which often provide only funding.
The industry is moving toward modular publishing models, where developers can pick and choose services. Luke Keighran, founder of Silver Lining Interactive, recently told GamesIndustry.biz that "the old school publishing model is dead," and that flexibility is now the norm. Xue reiterates that Thatgamepublisher can adopt a modular arrangement when appropriate, but for emotionally ambitious projects he believes an integrated partnership yields the best results.
By staying involved across creative development, production, positioning, marketing, community engagement, and platform strategy, the publisher can protect the emotional core of a game and guide it to a broader audience without diluting its essence. 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 shaped every title Thatgamecompany has released, from Flow and Flower to Journey and Sky. However, Chen adds, the ambition to craft emotionally resonant experiences extends beyond a single studio.
"Around the world, creators are exploring new ways to make games feel, and we want to help those ideas reach players," Xue says. The publisher’s role, according to Xue, is to safeguard the often‑intangible creative process that gives a game its heart. This can involve nurturing prototypes, encouraging iterative design, and fostering the quiet discoveries that emerge during development.
By providing resources, infrastructure, and a caring partnership, Thatgamepublisher aims to give developers the freedom to refine their visions. Drawing on its own experience running Sky: Children of the Light—a live‑service title with over 300 million downloads and seven years of global operation—Thatgamepublisher claims it understands how to scale deeply felt experiences without sacrificing authenticity. "By understanding each game's emotional truth, building from its community, and allowing genuine resonance to drive growth, we aim to help every project reach farther while staying true to the feeling at its heart," Xue concludes. In summary, Thatgamecompany’s launch of Thatgamepublisher marks a strategic expansion from creator to enabler, targeting games that aspire to move players on an emotional level.
With flexible funding, full‑service support, and a philosophy rooted in empathy and connection, the new label seeks to nurture the next generation of indie titles that can touch lives as profoundly as the studio’s own celebrated works.