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 mirrors a growing pattern in the indie sector where studios that have achieved breakout success use their newfound resources to back other independent developers. Recent examples include Innersloth, the creators of Among Us, which started Outersloth in 2024 to support games like Clickolding and The Horror at Highrook; Kinetic Games, known for Phasmophobia, which launched Kinetic Publishing and is already handling titles such as Precognition from Sam Barlow; Pocketpair, the studio behind Palworld, which now operates Pocketpair Publishing; and Landfall Games, the team behind Peak, which introduced the Evil Landfall label. The trend reflects a desire among small teams to reinvest surplus earnings into projects they understand and are passionate about.
Jenova Chen, co‑founder of Thatgamecompany, explains the logic behind the shift: "When an indie title that was built on a shoestring budget suddenly generates a large cash flow, the studio faces a choice. You could scale up dramatically, turning into a large corporation, or you could allocate the money toward something familiar—supporting other indie creators. Most of us prefer the latter, because we know the challenges and the creative process intimately." Thatgamecompany’s own history underscores the significance of this decision.
The release of Journey in 2012 nearly drove the studio to bankruptcy, resulting in widespread layoffs. In contrast, Sky: Children of the Light, launched in 2019, has become a global phenomenon, especially in the Chinese market, and even inspired a feature film.
The revenue generated by Sky now gives Thatgamecompany the financial flexibility to invest in what Chen describes as "emotionally ambitious games"—projects that aim to touch players on a deeper level than typical entertainment experiences. Chen also points out a shift in how games reach audiences.
In the early 2010s, distribution channels were dominated by platform holders like PlayStation. Today, the primary distribution network is the player community itself, amplified by influencers and social media. A successful indie title can amass millions of dedicated fans who become organic promoters, often out‑reaching traditional media outlets such as GameSpot, IGN, or even Steam’s own recommendation algorithms.
This democratized reach gives indie publishers a compelling reason to step into the publishing role, as they can leverage their own audience to amplify the visibility of new titles. Another distinctive advantage for Thatgamecompany is its demographic profile. According to Chen, roughly 70 % of Sky’s player base is female, giving the studio a broader gender reach than many of its peers. "If we highlight a game that appeals equally to men and women, we can tap into a unique overlap of players, many of whom are newcomers to gaming," he says.
This insight informs the type of projects Thatgamepublisher hopes to attract—games that resonate across diverse audiences and invite players who may not have previously engaged with interactive media. While the publisher has kept the specific titles it has signed under wraps, Chen shared the guiding philosophy in a press release: "When we first began making games, many doubted that interactive experiences could move people as profoundly as film, literature, or music. Over the years, we have seen games forge lifelong friendships, help individuals cope with personal challenges, reconnect families, and restore hope. Those moments convinced us that games can touch lives in a profound way.
Thatgamepublisher exists to support creators worldwide who are exploring new emotional frontiers in this medium." SJ Xue, Thatgamecompany’s vice‑president of growth and corporate development and the lead of the publishing initiative, elaborates on the criteria for potential partners. He emphasizes that genre, platform, or team size are not primary concerns. "We are open to any project that strives to reach meaningful emotional territory and uses interactivity to guide players there," Xue explains.
"Emotional impact can be joyful, chaotic, even humorous. The key question is: will the experience linger after the screen goes dark? If the answer is yes, we want to talk." Unlike many indie publishers that limit themselves to sub‑million‑dollar budgets, Thatgamepublisher is prepared to back larger undertakings. Xue notes that the studio is flexible regarding funding levels, supporting solo developers with groundbreaking ideas as well as larger teams capable of delivering AA‑quality productions.
The terms of each deal—such as revenue share and recoupment structures—will be tailored to the specific needs of the project, reflecting the company’s developer‑first mindset. Thatgamepublisher positions itself as a full‑service partner, offering not only capital but also assistance with production planning, platform strategy, marketing, community management, and long‑term intellectual property development.
This comprehensive approach contrasts with publishers like Outersloth or Evil Landfall, which often provide only funding. Industry observers, including Luke Keighran of Silver Lining Interactive, have noted that the traditional, one‑size‑fits‑all publishing model is fading in favor of modular services that developers can pick and choose.
Xue reiterates that Thatgamepublisher can adapt its involvement based on the developer’s needs, whether that means a modular package focused solely on marketing or a deeper, integrated partnership covering creative development, production, positioning, and community engagement. He argues that emotionally driven projects benefit from such holistic support because the creative core, production pipeline, and audience outreach are tightly interwoven. Ultimately, the publisher’s mission is rooted in the belief that games can forge shared emotional experiences and bring out the best in people.
Chen reflects on how this philosophy has shaped every title from Flow to Sky, and he sees the publishing arm as a way to extend that legacy beyond a single studio. By providing resources, expertise, and a nurturing environment, Thatgamepublisher aims to help creators across the globe bring their emotionally resonant visions to life, allowing those games to reach wider audiences while staying true to the feelings at their heart.