Thatgamecompany, the creative force behind acclaimed titles such as Flow, Flower, Journey, and the more recent Sky: Children of the Light, has announced the creation of a new publishing division named Thatgamepublisher. This move mirrors a growing pattern in the indie sector where studios that have scored a breakout hit use their newfound resources to support other developers.
Recent examples include Innersloth, the team behind Among Us, which launched Outersloth in 2024 to back games like Clickolding and The Horror at Highrook; Kinetic Games, known for Phasmophobia, which introduced Kinetic Publishing and is already handling projects such as Precognition from Sam Barlow; Pocketpair, the creators of Palworld, which now operates Pocketpair Publishing; and Landfall Games, the studio behind Peak, which formed the Evil Landfall label. The trend reflects a desire among small studios to reinvest surplus earnings into projects that align with their own artistic sensibilities. "Successful indie games are often built on shoestring budgets," explains Jenova Chen, co‑founder of Thatgamecompany. "When a title takes off, you suddenly have cash you didn’t anticipate.
You don’t want to balloon into a massive corporation, but you also don’t want that money to sit idle. The most logical place to invest is in other indie experiences you understand and love." Chen recalls that the studio’s early hit, Journey, nearly drove the company into bankruptcy, forcing a wave of layoffs.
In contrast, Sky: Children of the Light, released in 2019, has become a global phenomenon—particularly in China—and even inspired a feature film. The financial success of Sky now gives Thatgamecompany the flexibility to allocate profits toward what Chen calls "emotionally ambitious games." The publishing landscape has shifted dramatically since Journey’s debut. Back then, distribution channels were dominated by platform holders such as Sony. Today, Chen argues, "the distribution network belongs to the players themselves, who act as influencers." A viral indie title can amass millions of players who become its most effective marketing engine, often outpacing traditional media outlets like GameSpot, IGN, or even Steam.
This democratization of reach empowers indie studios to act as publishers, leveraging their own communities to promote new experiences. Another distinctive advantage Thatgamecompany brings to the table is its demographic profile. Roughly 70 % of Sky’s player base is female, giving the studio a broader gender reach than many of its peers.
"When we highlight a game that resonates with both men and women, we tap into a unique overlap," Chen notes, adding that many of their players are newcomers to gaming, which expands the potential audience for any new title they support. While the exact slate of games under Thatgamepublisher remains under wraps, Chen outlined the publisher’s guiding philosophy in a press release: "When we first started making games, many questioned whether interactive experiences could move players as deeply as film, literature, or music. Over the years, we have seen games 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 lead on the publishing initiative, emphasized that the label is looking for projects that "move people through play," regardless of genre, platform, or development stage. "We are open to any team size, from solo creators to larger groups with AA‑level budgets.
What matters is whether the game reaches for meaningful emotional territory and uses interactivity to guide players there," Xue said. He added that emotional impact can take many forms—joy, chaos, humor—as long as the experience lingers after the console is turned off.
Unlike many indie publishers that focus solely on funding, Thatgamepublisher is positioning itself as a full‑service partner. The studio offers financing, production planning, launch strategy, marketing, community management, and long‑term IP development.
Xue explained that the terms of each deal will be tailored to the project's needs, with flexible recoupment percentages and a commitment to fairness and transparency. "As developers ourselves, we understand the importance of partnerships that empower creators while providing the support needed to realize the strongest version of their game," he said. The modular approach to publishing is gaining traction across the industry. Luke Keighran, founder of Silver Lining Interactive, told GamesIndustry.biz that "the old school publishing model is dead," and that developers now choose specific services—marketing, console ports, funding, or a combination—that best suit their needs.
Thatgamepublisher embraces this flexibility, offering both modular and integrated arrangements. For emotionally driven projects, Xue believes a more holistic partnership is beneficial because creative development, production, positioning, marketing, community engagement, and platform strategy are often tightly interwoven. Why should developers consider Thatgamepublisher? Xue points to the studio’s core belief that games can forge shared emotional experiences and bring out the best in people.
This philosophy has shaped every title Thatgamecompany has released, from the meditative flow of Flow to the tender journey of Journey. The team now wants to extend that ethos beyond its own studio, helping other creators explore the emotional potential of interactive media. Drawing on seven years of operating Sky: Children of the Light as a live‑service experience with over 300 million downloads, Thatgamecompany has learned how to scale emotionally resonant games without diluting their core feeling.
Xue summed up the publisher’s mission: "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."