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 in the independent‑game sector where studios that have scored a breakout success expand into publishing or funding roles to uplift other indie developers. In 2024, Innersloth, the creators of the viral sensation Among Us, introduced Outersloth to back projects like Clickolding and The Horror at Highrook.
Earlier this year, Kinetic Games, known for Phasmophobia, launched Kinetic Publishing and added titles such as Precognition—crafted by Sam Barlow of Immortality fame—to its roster. Pocketpair, the studio behind Palworld, started Pocketpair Publishing, while Landfall Games, the team behind Peak, unveiled the Evil Landfall label.
The trend reflects a broader shift: successful indie studios now have the capital and industry insight to become patrons of the next wave of innovative games. 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 hit, you suddenly have a surplus of cash," he says. "But we’re a small, tightly‑knit team; we don’t want to balloon into a thousand‑person corporation overnight.
Instead, we look for ways to invest that money in areas we understand best—other indie games. It feels like a natural extension of what we love to do." The financial landscape was starkly different when Journey launched in 2012. Chen has recounted how the project's development nearly pushed the studio to bankruptcy, resulting in a wave of layoffs.
The situation has dramatically reversed with Sky: Children of the Light, released in 2019. The game has become a global phenomenon, especially in China, and even inspired a feature‑film adaptation.
The revenue generated by Sky now gives Thatgamecompany the freedom to allocate funds toward what they term "emotionally ambitious" games—projects that aim to move players on a deeper, more personal level. Chen also notes a shift in distribution dynamics.
In the era of Journey, platforms like PlayStation controlled the primary channels for reaching players. Today, distribution is largely driven by the community itself—players act as influencers, sharing experiences across social media, streaming services, and word‑of‑mouth networks. "A successful indie title can now have millions of players who become its most powerful marketing engine," Chen says. "Your audience, especially those who love heartfelt, cooperative experiences, can spread the word far more effectively than traditional outlets like GameSpot or IGN." Another unique advantage for Thatgamecompany is its demographic reach.
Roughly 70% of Sky's player base is female, giving the studio a broader gender balance than many of its peers. "When we highlight a game that appeals to both men and women, we tap into an audience that often includes people who have never played games before," Chen adds.
This crossover potential is a compelling selling point for developers seeking diverse exposure. Thatgamepublisher has already entered into agreements with a "couple" of undisclosed titles. In a press release, Chen articulated the publisher's mission: "When we first began making games, many questioned whether interactive experiences could move players as profoundly as film, literature, or music.
Over the years, games have proven they can forge lifelong friendships, heal personal struggles, reconnect loved ones, and restore hope. Thatgamepublisher exists because we believe countless creators worldwide are exploring new emotional frontiers, and we want to help bring those visions to life." SJ Xue, Thatgamecompany's vice‑president of growth and corporate development and the leader of the publishing initiative, emphasizes the focus on emotional impact over genre or platform constraints.
"We are open to any team size, any development stage, and even prototypes," Xue explains. "What matters is whether the game reaches for meaningful emotional territory and uses interactivity to guide players there." Xue further clarifies that "emotional" can encompass joy, chaos, humor, or melancholy, but the core question remains: "Will this stay with someone after the screen goes dark?" If a project can answer that affirmatively, Thatgamepublisher wants to start a conversation.
While many indie publishers limit themselves to sub‑million‑dollar budgets, Thatgamepublisher is prepared to back larger, AA‑scale endeavors. "We are flexible regarding funding and project scale," Xue says. "We can work with solo creators bursting with imagination or larger teams seeking AA‑level resources." The terms of each publishing deal will be tailored to the project's needs.
Xue stresses that, as developers themselves, they understand the importance of fair, transparent, and developer‑friendly agreements that provide the necessary support to realize a game's strongest version. Thatgamepublisher is positioning itself as a full‑service publisher, offering not only capital but also production planning, platform strategy, marketing, community management, and long‑term IP development. This contrasts with other indie publishers like Outersloth and Evil Landfall, which often adopt a funding‑only model. Industry observers note a broader shift toward modular publishing, where developers can pick and choose services such as marketing, console porting, or funding.
Luke Keighran of Silver Lining Interactive summed it up: "The old school publishing model is dead; the new model lets developers select the exact support they need." Xue confirms that Thatgamepublisher can adapt to modular arrangements, but for emotionally driven projects they often prefer an integrated partnership. "Creative development, production, positioning, marketing, community, and platform strategy are deeply interconnected for these games," he says. "Being involved across those areas lets us protect the emotional core and help the team carry that vision all the way to players." Ultimately, the publisher aims to meet each project where it stands and shape the partnership around what will be most useful for the developer. The guiding philosophy is simple: games have the power to connect people through shared emotional experiences and bring out the best in humanity.
This belief has shaped Thatgamecompany's own catalog—from Flow and Flower to Journey and Sky—and now extends to supporting creators worldwide who are pushing the boundaries of what games can make us feel. Chen concludes, "We learned from our own work that emotionally ambitious games often need a different playbook. The heart of a project may not be obvious at the start; it can emerge through prototypes, iteration, quiet discoveries, and the right conversations.
Our role is to protect that process, give developers room and guidance, and align resources so the strongest version of their work can reach players. With over 300 million downloads of Sky and seven years of live‑service experience, we know how to scale heartfelt experiences without diluting their meaning.
By understanding each game's emotional truth, building from its community, and allowing genuine resonance to create scale, we aim to help every project reach farther while staying true to its core feeling.