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 reflects a broader industry pattern in which successful independent studios leverage their financial windfalls to nurture other indie projects.
Recent examples include Innersloth’s Outersloth, which debuted in 2024 and now backs games like Clickolding and The Horror at Highrook; Kinetic Games, the team behind Phasmophobia, which launched Kinetic Publishing and is supporting titles such as Precognition from Sam Barlow; Pocketpair, the developers of Palworld, which introduced Pocketpair Publishing; and Landfall Games, the creators of Peak, which have started the Evil Landfall label. The trend demonstrates how small studios, after scoring a breakout hit, often choose to reinvest in the ecosystem that helped them succeed.
"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 thousand‑person corporation.
With extra capital, you need to decide where to allocate it. Investing in other indie games feels natural because it aligns with what you understand best.
That's why many indie studios are taking the publishing route." When Journey launched in 2012, Thatgamecompany was far from flush with cash. Chen has recounted that the development of Journey nearly pushed the studio to the brink of bankruptcy, resulting in a wave of layoffs.
The situation is dramatically different today. Sky: Children of the Light, released in 2019, has become a global phenomenon, especially in the Chinese market, and even inspired a feature‑film adaptation.
The revenue generated by Sky now provides Thatgamecompany with the financial breathing room to back what they describe as "emotionally ambitious" games. The distribution landscape has also shifted. Chen noted that during the early days of Journey, the primary distribution channels were controlled by platform holders like Sony. "Now the distribution network belongs to the players themselves, who act as influencers," he said.
A successful indie title can amass millions of players, and those players become the most potent marketing engine. "If you have an audience that loves a certain style of game, they will seek out similar experiences, often more effectively than traditional media outlets like GameSpot, IGN, or even Steam." Another distinctive asset for Thatgamecompany is its demographic reach. Chen highlighted that roughly 70 % of Sky’s player base is female, giving the studio a broader gender balance than many competitors. "When we feature a game that appeals to both men and women, we tap into a unique overlap because many of our players are newcomers to gaming," he explained.
Although specific titles have not yet been disclosed, Chen confirmed that Thatgamepublisher has already signed a "couple" of projects. In the official press release, he articulated the publisher’s philosophy: "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 their capacity to forge 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 head of the publishing initiative, told GamesIndustry.biz that the company is searching for titles that "move people through play." He emphasized that genre, platform, or team size are not limiting factors. "We are open to any team, any stage of development, even early prototypes.
What matters is whether the game reaches for meaningful emotional territory and uses interactivity to take players there." Xue elaborated on the definition of "emotional" by noting it can encompass joy, chaos, humor, or any feeling that lingers after the screen goes dark. "If a game can stay with someone after they finish playing, we want to talk to them," he said.
While many indie publishers focus on sub‑million‑dollar budgets, Thatgamepublisher is willing to support larger, AA‑level projects. Xue explained that the studio is flexible regarding funding amounts and will tailor deals to each project's needs. "As developers ourselves, we understand the importance of fair, transparent, and developer‑friendly partnerships that give teams the support they need to realize the strongest version of their game," he said. The new label will operate as a full‑service publisher, offering financing, production planning, platform strategy, marketing, community management, and long‑term IP development.
This contrasts with some peers, such as Outersloth or Evil Landfall, which primarily provide funding. Industry observers note a shift toward modular publishing models, where developers can cherry‑pick services they require.
Luke Keighran of Silver Lining Interactive remarked that "the old school publishing model is dead" and that flexibility is now the norm. Xue confirmed that Thatgamepublisher can adapt its involvement based on a developer’s specific needs, whether that means a modular arrangement focused solely on funding or a deeper partnership covering production, marketing, and community building. He argued that emotionally driven projects often benefit from an integrated approach because creative development, production, positioning, and community engagement are tightly interwoven.
"Being involved across those areas allows us to protect the emotional core of the game and help the team carry that vision all the way to players," he said. Ultimately, Xue believes that the studio’s founding belief—that games can forge shared emotional experiences and bring out the best in people—should guide every partnership. He cited the studio’s own portfolio, from Flow and Flower to Journey and Sky, as proof of that philosophy in action. Yet he also recognized that the emotional frontier is larger than any single studio.
"Around the world, creators are exploring new ways to make people feel through games, and we want to help those ideas reach players." He described the role of the publisher as a guardian of the creative process: "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, quiet discoveries, and the right conversations. Our job is to protect that process, giving developers space, guidance, and alignment to discover the strongest version of their work." Drawing on the experience of operating 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 diluting their meaning.
By focusing on the emotional truth of each game, building from its community, and allowing genuine resonance to drive growth, the publisher aims to help every project reach a broader audience while staying true to its core feeling. In summary, Thatgamepublisher represents Thatgamecompany’s evolution from a small indie studio into a full‑service publishing house dedicated to nurturing games that prioritize emotional impact.
With flexible funding, a willingness to support projects of any scale, and a philosophy centered on shared human experience, the new label seeks to empower creators worldwide to push the emotional boundaries of interactive entertainment.