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 among successful indie developers who, after scoring a breakout hit, branch out into publishing or funding to nurture other independent projects.
Recent examples include Innersloth’s Outersloth (launched in 2024) supporting games like Clickolding and The Horror at Highrook, Kinetic Games’ Kinetic Publishing backing Sam Barlow’s latest Precognition, Pocketpair’s Pocketpair Publishing, and Landfall Games’ Evil Landfall label, among many others. "It’s a common trajectory because indie studios often start on shoestring budgets; when a game blows up, you suddenly have a surplus of cash," explains Jenova Chen, co‑founder of Thatgamecompany.
"But we’re still a small team; we don’t want to balloon into a massive corporation overnight. The sensible way to deploy extra capital is to invest in areas we understand—namely, other indie games. That’s why so many indie studios are becoming publishers." When Journey launched in 2012, the studio was far from flush with cash. Chen has previously told GamesIndustry.biz that the development of Journey nearly bankrupted the company and forced a wave of layoffs.
The situation is dramatically different now. Sky: Children of the Light, released in 2019, has become a global phenomenon, especially in China, and even inspired a feature‑film adaptation.
The revenue generated by Sky has given Thatgamecompany the financial footing to fund what it describes as "emotionally ambitious" games. Chen also notes a shift in how games reach audiences. In the early 2010s, distribution channels were dominated by platform holders like PlayStation. Today, "the distribution network belongs to the players themselves, who act as influencers." A successful indie title can amass millions of players who become its most effective promoters, often out‑reaching traditional media outlets such as GameSpot, IGN, or even Steam.
Another distinctive advantage for Thatgamecompany is its demographic reach. Roughly 70 % of Sky’s player base is female, giving the studio a broader gender balance than most game companies. "If we highlight a title that appeals to both men and women, we can tap into a unique overlap," Chen says, adding that many of their players are newcomers to gaming, which further expands the potential audience.
Thatgamepublisher has already signed a "couple" of projects, though details remain under wraps. In its press release, Chen articulated the publisher’s mission: "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 effort, told GamesIndustry.biz that the studio is looking for games that "move people through play." He emphasized that genre, platform, or team size are not primary criteria. "What matters is whether the game reaches for meaningful emotional territory and uses interactivity to take players there," Xue said.
He elaborated that "emotional" can encompass joy, chaos, humor, or any feeling that lingers after the screen goes dark. If a game aspires to create that lasting impression, Thatgamepublisher wants to discuss it.
While many indie publishers focus on sub‑million‑dollar budgets, Thatgamepublisher is prepared to back larger endeavors. "We are quite flexible when it comes to funding and project scale," Xue explained. "We work with solo creators bursting with creativity as well as larger teams handling AA‑level budgets." The specifics of each publishing deal—such as revenue share and recoup terms—will be tailored to the individual project’s needs.
Xue stressed that, as developers themselves, they understand the importance of fair, transparent, and developer‑friendly partnerships that provide the support required to realize a game’s strongest version. Unlike some indie publishers that adopt a funding‑only model, 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 comprehensive approach mirrors a broader industry trend toward modular publishing, where developers can pick and choose services. Luke Keighran of Silver Lining Interactive observed that "the old school publishing model is dead" and that modern publishers act more like flexible partners. Xue confirmed that Thatgamepublisher can adapt its involvement based on a developer’s needs, providing modular arrangements for funding, marketing, or other support. However, he added that for emotionally ambitious projects, an integrated partnership often yields the best results because creative development, production, positioning, marketing, community, and platform strategy are deeply intertwined.
By staying involved across these areas, the publisher can protect the game’s emotional core and help the team bring their vision to players. Ultimately, the goal is to meet each project where it stands and shape the partnership around what will be most useful for the developer. Xue highlighted the company’s founding philosophy: games have the power to connect people through shared emotional experiences and bring out the best in us.
That belief has guided everything Thatgamecompany has created—from Flow and Flower to Journey and Sky. He concluded, "We have learned 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 the right creative conversations. Our role is to protect that process, giving developers the space, guidance, and alignment they need to discover the strongest version of their work. With our experience running Sky as an emotional live‑service game that has amassed over 300 million downloads and seven years of global operation, we know how to scale heartfelt experiences without diluting their impact.
By understanding each game’s emotional truth, building from its community, and allowing genuine resonance to drive growth, we aim to help every project reach farther while staying true to the feeling at its heart."