Thatgamecompany, the acclaimed creator behind titles such as Flow, Flower, Journey, and the recent hit Sky: Children of the Light, has announced the formation of a new publishing division named Thatgamepublisher. This move reflects a broader industry pattern in which independent studios that have scored a breakout success expand into publishing or investment roles to nurture other indie projects. For example, the developers of Among Us, Innersloth, introduced Outersloth in 2024, backing games like Clickolding and The Horror at Highrook. Earlier this year, Kinetic Games—known for Phasmophobia—started Kinetic Publishing, adding titles such as Precognition, the newest work from Sam Barlow of Immortality fame.
Pocketpair, the studio behind Palworld, has rolled out Pocketpair Publishing, while Landfall Games, the team behind Peak, created the Evil Landfall label. The trend continues to grow as more small studios leverage their financial windfalls to become patrons of the indie ecosystem.
Jenova Chen, co‑founder of Thatgamecompany, explains the motivation behind the shift: "Successful indie games are usually built on very tight budgets. When one of those games becomes a runaway hit, the studio suddenly finds itself with a surplus of cash. But we’re a small team that doesn’t want to balloon into a massive corporation overnight, and we can’t simply hoard the money. The logical place to invest is in something we understand deeply—other indie games.
That’s why many indie developers are moving into publishing." The financial reality was stark when Journey launched in 2012. Chen told GamesIndustry.biz that the project almost drove the studio into bankruptcy and forced a wave of layoffs. In contrast, Sky: Children of the Light, released in 2019, has generated massive revenue, especially in the Chinese market, and even inspired a feature film adaptation.
The profits from Sky now give Thatgamecompany the resources to back what it describes as "emotionally ambitious games" with budgets that can reach AA levels. Chen also notes a seismic shift in how games reach players.
In the early 2010s, distribution channels were dominated by platform holders like PlayStation. Today, distribution is largely driven by the players themselves, who act as influencers and word‑of‑mouth marketers. A successful indie title can amass millions of fans who become its most powerful promotional engine, often surpassing traditional media outlets such as GameSpot, IGN, or even Steam in reach.
Another distinctive advantage for Thatgamecompany is its audience demographic. "We have a significantly larger female player base than most other game companies," Chen says, adding that roughly 70% of Sky’s users are women. This gender‑balanced community offers a unique crossover potential for games that appeal to both men and women, especially for titles that might attract newcomers to gaming. While the specific titles under contract remain under wraps, Thatgamepublisher has already signed a "couple" of projects.
In a press release, Chen outlined the publisher’s philosophy: "When we first started making games, many doubted 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, tells GamesIndustry.biz that the studio is seeking titles that "move people through play." He emphasizes that genre, platform, or team size are not primary filters. "We are open to any team, any stage of development, and even prototypes," Xue says. "What matters is whether the game reaches for meaningful emotional territory and uses interactivity to guide players there." According to Xue, "emotional" can encompass joy, chaos, humor, or melancholy.
The core question is whether the experience lingers after the screen goes dark. If a game aspires to that lingering impact, Thatgamepublisher wants to start a conversation.
Most indie publishers focus on sub‑million‑dollar budgets, but Thatgamepublisher is willing to back larger ambitions. "We are flexible regarding funding and project scale," Xue explains. "We can work with solo creators who have immense creativity or with larger teams that need 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 give teams the support required to realize the strongest version of their game.
Thatgamepublisher will operate as a full‑service publisher, offering financing, production planning, platform and launch strategy, marketing, community management, and long‑term IP development. This contrasts with some indie publishers—such as Outersloth or Evil Landfall—that adopt a funding‑only model. The industry is moving toward modular publishing, where developers can pick and choose services. Luke Keighran of Silver Lining Interactive told GamesIndustry.biz that "the old school publishing model is dead" and that the new approach lets developers select exactly what they need, be it marketing, console conversion assistance, or funding.
Xue says Thatgamepublisher can adapt to modular arrangements as well, but believes that many emotionally ambitious projects benefit from an integrated partnership. "Creative development, production, positioning, marketing, community, and platform strategy are often deeply interconnected for these games. Being involved across those areas lets us protect the emotional core and help the team carry that vision all the way to players," he notes. Ultimately, the goal is to meet each project where it is and shape the partnership around what will be most useful to the developer.
Xue points to the company’s founding philosophy: games can connect people through shared emotional experiences and bring out the best in us. "That belief has shaped everything we’ve made—from Flow and Flower to Journey and Sky.
But we also know that this path is larger than a single studio. Creators worldwide are exploring new ways to expand what games can make people feel, and we want to help those ideas reach players." He adds that 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 thoughtful conversations.
Thatgamepublisher’s role is to protect that process, providing room, guidance, and alignment for developers to discover the strongest version of their work. Drawing on their experience running Sky: Children of the Light—a live‑service title with over 300 million downloads and seven years of global operation—Thatgamecompany understands how deeply felt experiences can scale without losing meaning. By grasping each game's emotional truth, building from its community, and allowing genuine resonance to create scale over time, Thatgamepublisher aims to help every project reach farther while staying true to the feeling at its heart.