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 called Thatgamepublisher. This move follows a growing pattern among successful indie developers who, after scoring a breakout hit, expand into publishing or funding to nurture other independent projects. For example, Innersloth, the team behind the viral sensation Among Us, launched Outersloth in 2024 and has already backed games like Clickolding and The Horror at Highrook. Earlier this year, Kinetic Games, known for Phasmophobia, introduced Kinetic Publishing, adding titles such as Precognition—created by Sam Barlow, the mind behind Immortality—to its roster.
Pocketpair, the studio behind Palworld, has started Pocketpair Publishing, while Landfall Games, the creators of Peak, have formed the Evil Landfall label. The trend is unmistakable: indie studios with a hit are leveraging their newfound resources to become patrons of the next wave of innovative games. "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," explained Jenova Chen, co‑founder of Thatgamecompany.
"But then you are a small team making games, you don't want to suddenly become a thousands‑person 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 reality was stark when Journey launched in 2012. Chen recalled to GamesIndustry.biz that the project's development nearly drove the studio to bankruptcy, resulting in a mass layoff of staff.
In contrast, Sky: Children of the Light, released in 2019, has become a global phenomenon—particularly in the Chinese market—and even inspired a feature film. The revenue generated by Sky now gives Thatgamecompany the capacity to fund what it calls "emotionally ambitious games," projects that aim to touch players on a deeper level. Chen also highlighted a shift in how games reach audiences.
In the era of Journey, distribution channels were controlled by platform holders like PlayStation. Today, "the distribution network is owned by the players, who are influencers." A successful indie title can amass millions of players who act as organic promoters, often outweighing traditional media outlets such as GameSpot, IGN, or even Steam in terms of reach. "You have an audience who love a certain style of game and they're looking for more of it.
You actually have more influence for distribution than the big outlets," Chen noted. Another unique advantage Thatgamecompany brings to the table is its demographic reach. "We have a much bigger female audience reach than most of the game companies in the world," Chen said, citing that roughly 70% of Sky's player base is female. This gender‑balanced audience creates an opportunity to showcase games that appeal to both men and women, especially titles that may introduce newcomers to gaming.
While specific titles under Thatgamepublisher have not yet been disclosed, Chen outlined the publisher's 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 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 leader of the publishing initiative, told GamesIndustry.biz that the studio is searching for projects that "move people through play." He emphasized that the publisher is not limited by genre, platform, or scale. "The typical genre or platform restrictions would not apply to us," Xue said.
"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 further explained that "emotional" can encompass a wide range of feelings—joy, chaos, humor—and the key question is whether the experience lingers after the console is turned off.
"If a game is chasing that, we want to have the conversation," he added. Where many indie publishers limit themselves to sub‑million‑dollar budgets, Thatgamepublisher is prepared to support larger, AA‑level endeavors.
"We are quite flexible when it comes to funding and project scale," Xue affirmed. "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 project's needs.
Xue emphasized that, as developers themselves, they understand the importance of fair, transparent, and developer‑friendly partnerships. This includes negotiating recoup percentages and other financial details on a case‑by‑case basis.
Unlike some indie publishers that operate solely as funding sources, Thatgamepublisher is launching as a full‑service publisher. It will offer financing, production planning, platform and launch strategy, marketing, community management, and long‑term IP development.
This comprehensive approach contrasts with the modular models favored by companies like Outersloth and Evil Landfall, which allow developers to 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 modern publishers must provide flexible, à la carte options. Xue clarified that Thatgamepublisher can also adopt a modular arrangement when appropriate, customizing support around funding, marketing, or other specific needs. However, for projects with an emotional ambition at their core, he believes an integrated partnership yields the best results.
"For emotionally ambitious projects, 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 ultimate goal, according to Xue, is to meet each developer where they are and shape the partnership around what will be most useful. He pointed to Thatgamecompany's founding belief that games can forge shared emotional experiences and bring out the best in people.
"That belief has shaped everything Thatgamecompany has made, from Flow and Flower to Journey and Sky: Children of the Light. But we also know this path is bigger than the work of one studio. Around the world, creators are exploring their own ways to expand what games can make people feel, and we want to help those ideas find their way to players," Xue explained. He added that emotionally ambitious games often require a different playbook.
"The heart of a project is not always easy to define at the beginning. It can emerge through prototypes, iteration, quiet discoveries, and the right creative conversations. Our role is to help protect that process, giving developers the room, guidance, and alignment they need to discover the strongest version of their work," Xue 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 believes they understand how to scale heartfelt experiences without diluting their impact. "By understanding the emotional truth of each game, building from its players and community, and allowing genuine resonance to create scale over time, we aim to help every project reach farther while staying true to the feeling at its heart," Xue concluded.