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 among successful indie developers who, after achieving a breakout hit, branch out into publishing or funding to nurture other independent projects. 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, the studio behind Phasmophobia, which started Kinetic Publishing with titles such as Precognition; 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 broader shift in the industry where developers leverage their newfound capital and expertise to support peers.
Jenova Chen, co‑founder of Thatgamecompany, explains the logic behind the transition: "When an indie game that was built on a shoestring budget becomes a massive success, you suddenly have a surplus of cash. Yet you don’t want to balloon into a massive corporation overnight. The sensible way to allocate that money is to invest in something you understand deeply—other indie games. That’s why many indie studios are moving into publishing." Thatgamecompany’s own journey illustrates how far the studio has come.
When Journey launched in 2012, the project nearly bankrupted the company, resulting in widespread layoffs. In contrast, Sky: Children of the Light, released in 2019, has become a global phenomenon, especially in the Chinese market, and even inspired a feature film.
The revenue generated by Sky now enables Thatgamecompany to allocate funds toward what it calls "emotionally ambitious" games. Chen also notes a fundamental change in distribution. In the early 2010s, platforms like PlayStation controlled the channels through which games reached players.
Today, the distribution network is effectively owned by the players themselves, who act as influencers. A successful indie title can amass millions of dedicated fans, providing a distribution engine that rivals traditional media outlets such as GameSpot, IGN, or even Steam. "If your audience loves a certain style of game, they become your strongest marketing force," Chen says.
Another distinctive advantage for Thatgamecompany is its audience demographics. Roughly 70 % of Sky’s player base is female, giving the studio a reach into a segment that many other developers struggle to engage. Chen believes this unique overlap allows the publisher to promote titles that appeal equally to men and women, many of whom may be new to gaming altogether. While specific projects have not yet been disclosed, Chen revealed that Thatgamepublisher has already signed a "couple" of games.
In a press release, he articulated the publisher’s mission: "When we first began making games, many doubted whether interactive experiences could move players as profoundly as film, literature, or music. Over the years, we’ve seen games forge lifelong friendships, heal personal struggles, reunite loved ones, and restore hope.
Those moments convinced us that games can touch lives in deep, meaningful ways. Thatgamepublisher exists to help creators worldwide explore new emotional frontiers and bring those visions to life." SJ Xue, Thatgamecompany’s vice‑president of growth and corporate development and the leader of the publishing effort, emphasized the studio’s focus on emotional impact over genre or platform constraints. "We’re open to any team size, any development stage, and even prototypes.
What matters is whether the game reaches for meaningful emotional territory and uses interactivity to guide players there," Xue said. He added that "emotional" can encompass joy, chaos, humor, or any feeling that lingers after the screen goes dark.
Unlike many indie publishers that limit themselves to sub‑million‑dollar budgets, Thatgamepublisher is willing to back larger, AA‑level projects. Xue explained that the terms of each deal—such as revenue share and recoup structures—will be tailored to the needs of the individual project. "As developers ourselves, we understand the importance of fair, transparent, developer‑friendly partnerships that give teams the support they need to realize the strongest version of their game," he said.
Thatgamepublisher will operate as a full‑service publisher, offering funding, production planning, platform strategy, marketing, community management, and long‑term IP development. This contrasts with 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 of Silver Lining Interactive summed up the shift: "The old school publishing model is dead; today developers select the specific support they need—whether it’s marketing, console conversion, or funding." Xue reiterated that Thatgamepublisher can adapt its involvement based on each developer’s requirements, offering modular arrangements for funding, marketing, or other support.
However, for projects with an emotional ambition, he believes a more integrated partnership yields the best results. "Creative development, production, positioning, marketing, community, and platform strategy are often deeply interconnected for emotionally driven games. Being involved across those areas lets us protect the game's emotional core and help the team carry that vision to players," he explained. The core philosophy behind the new venture is simple: games have the power to connect people through shared emotional experiences.
Chen reflected that this belief has shaped everything Thatgamecompany has produced—from the meditative Flow to the heartfelt Journey. "We’ve learned that emotionally ambitious games often need a different playbook.
The heart of a project may not be obvious at the outset; it can emerge through prototypes, iteration, and quiet discovery. Our role is to protect that process, giving developers space, guidance, and alignment to uncover the strongest version of their work," Chen said.
Drawing on their experience running Sky: Children of the Light as a live‑service title with over 300 million downloads and seven years of global operation, Thatgamecompany feels equipped to help other studios scale without compromising emotional depth. "By understanding each game's emotional truth, building from its community, and allowing genuine resonance to create scale over time, we aim to help every project reach farther while staying true to its heart," Xue concluded.