Thatgamecompany, the creative force behind acclaimed titles such as Flow, Flower, Journey, and the more recent Sky: Children of the Light, has announced the formation of a new publishing division named Thatgamepublisher. This move mirrors a broader industry pattern in which independent studios that have scored a breakout hit leverage their newfound financial stability to become publishers or investors for other indie projects.
Recent 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, known for Phasmophobia, which started Kinetic Publishing and now supports titles such as Precognition by Sam Barlow; Pocketpair, the studio behind Palworld, which introduced Pocketpair Publishing; and Landfall Games, the team behind Peak, which created the Evil Landfall label. The trend reflects a desire among small, successful developers to reinvest surplus capital back into the ecosystem that helped them thrive.
Jenova Chen, co‑founder of Thatgamecompany, explained the motivation behind the new venture: "When an indie game that was built on a shoestring budget becomes a hit, you suddenly have cash that you can’t just let sit idle. As a small team, you don’t want to balloon into a massive corporation, yet you also don’t want to waste the resources you now have. The logical place to invest is in something you understand deeply—other indie games.
That's why many indie studios are branching out into publishing." The financial landscape was very different when Journey launched in 2012. Chen has recounted that the development of Journey nearly drove the studio to bankruptcy, forcing a round of layoffs.
In contrast, Sky: Children of the Light, released in 2019, has generated substantial revenue worldwide, especially in the Chinese market, and even inspired a feature film. The profits from Sky now give Thatgamecompany the means to fund what it calls "emotionally ambitious" games, a category that aligns with the studio’s artistic philosophy.
Chen also highlighted a shift in distribution dynamics. In the early 2010s, platforms such as PlayStation controlled the primary distribution channels. Today, however, the distribution network is effectively owned by the players themselves, who act as influencers and organic marketers. A successful indie title can reach millions of players who become its most powerful promotional engine, often surpassing traditional media outlets like GameSpot, IGN, or even Steam in terms of reach.
Another distinctive asset for Thatgamecompany is its audience composition. Chen notes that roughly 70 % of Sky’s player base is female, giving the studio a broader gender reach than many of its peers. "When we promote a game that appeals equally to men and women, we tap into a unique overlap of audiences, many of whom may be newcomers to gaming," he said.
While the specific titles in Thatgamepublisher’s initial slate remain under wraps, the publisher’s mission statement, released alongside the announcement, underscores a commitment to games that can move players on a deep emotional level. The statement reads: "When we first began making games, many questioned whether interactive experiences could affect 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 them bring those visions to life." SJ Xue, Thatgamecompany’s Vice President of Growth and Corporate Development and the leader of the publishing effort, told GamesIndustry.biz that the studio is searching for projects that "move people through play." He emphasized that the publisher will not be constrained by genre, platform, or team size.
"We are open to solo developers with bold ideas as well as larger teams working on AA‑level budgets. What matters is whether the game reaches for meaningful emotional territory and uses interactivity to carry players there." Xue elaborated on the definition of "emotional" in this context, noting that it can encompass joy, chaos, humor, or any feeling that lingers after the console is turned off. "If a game can stay with someone after the screen goes dark, we want to have that conversation," he said. Unlike many indie publishers that focus primarily on sub‑million‑dollar projects, Thatgamepublisher is prepared to back larger undertakings.
Xue explained that funding terms, including revenue share and recoupment structures, will be tailored to each project's needs. "As developers ourselves, we understand the importance of fair, transparent, and developer‑friendly partnerships," he remarked. The new publisher will operate as a full‑service entity, offering not only capital but also production planning, platform strategy, marketing, community management, and long‑term IP development. This comprehensive approach differentiates Thatgamepublisher from other indie‑focused publishers like Outersloth or Evil Landfall, which often adopt a modular, funding‑only model.
Luke Keighran, founder of Silver Lining Interactive, recently told GamesIndustry.biz that "the old school publishing model is dead" and that developers now prefer to pick and choose the services they need, whether that’s marketing, console porting, or full‑scale production support. Xue confirmed that Thatgamepublisher will remain flexible, offering modular arrangements when appropriate, but he also stressed that emotionally ambitious projects often benefit from an integrated partnership. By staying involved across creative development, production, positioning, marketing, community engagement, and platform strategy, the publisher believes it can protect the emotional core of a game and guide it to its audience without diluting its essence. When asked why developers should consider signing with Thatgamepublisher, Xue pointed to the studio’s founding philosophy: games can connect people through shared emotional experiences and bring out the best in humanity.
He cited the studio’s own portfolio—from the meditative flow of Flow to the tender narrative of Journey—as evidence that this belief is more than rhetoric; it is a guiding principle that has shaped every project. Xue also highlighted the practical experience Thatgamecompany has gained from operating Sky: Children of the Light as a live‑service title with over 300 million downloads and seven years of global operation. This background, he argued, gives the publisher unique insight into how deeply felt experiences can scale to massive audiences while retaining their emotional impact. In summary, Thatgamepublisher aims to serve as a bridge between visionary indie creators and the broader gaming market, providing the resources, expertise, and compassionate partnership needed to bring emotionally resonant games to life.
By leveraging its own track record, a diverse and gender‑balanced player base, and a flexible, full‑service publishing model, the studio hopes to nurture a new wave of games that linger in players' hearts long after the final frame fades.