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 independent studios that have achieved breakout success and are now leveraging their financial windfalls and industry expertise to support other indie developers.
Similar initiatives include Innersloth’s Outersloth, which debuted in 2024 and has already backed games like Clickolding and The Horror at Highrook; Kinetic Games’ Kinetic Publishing, home to titles such as Precognition from Sam Barlow; Pocketpair’s Pocketpair Publishing; and Landfall Games’ Evil Landfall label. The trend reflects a broader shift in the games ecosystem where creators who have benefited from modest budgets and passionate communities are now positioned to become patrons of the next wave of innovative experiences. Jenova Chen, co‑founder of Thatgamecompany, explains the logic behind the transition: "When an indie title takes off, it usually does so on a shoestring budget. Suddenly you have a surplus of cash, but you don’t want to turn your small, tightly‑knit team into a massive corporation.
The most natural way to allocate those resources is to invest in projects you understand and love—namely, other indie games." Chen recalls that the studio’s early days were far from lucrative. The development of Journey in 2012 nearly drove the company to bankruptcy, resulting in a wave of layoffs. However, the landscape has altered dramatically since then.
Sky: Children of the Light, launched in 2019, has become a global phenomenon, especially in China, and has even inspired a feature film. The sustained revenue from Sky now gives Thatgamecompany the financial flexibility to back "emotionally ambitious" games that might otherwise struggle to find traditional publishing support. The distribution environment has also evolved. Chen notes that during Journey’s release, the primary distribution channels were controlled by platform holders like PlayStation.
Today, "the distribution network is owned by the players, who are influencers." Social media, streaming platforms, and community-driven word‑of‑mouth can propel an indie title to millions of players without the need for massive marketing budgets. This democratization of reach means that a studio with a dedicated fanbase can act as a powerful conduit for new games that share similar sensibilities. Another distinctive advantage Thatgamecompany brings to the table is its audience demographic. Roughly 70 % of Sky’s player base is female, giving the studio a uniquely balanced gender split compared with many other publishers.
Chen believes this creates an "overlap" where games that appeal equally to men and women can find a receptive audience that may not have been exposed to gaming before. This insight informs the kind of projects Thatgamepublisher is looking to champion—titles that can resonate across diverse player groups and foster inclusive emotional experiences. While the roster of games under Thatgamepublisher remains under wraps, Chen shared the publisher’s overarching philosophy in a press release: "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 proved their capacity to 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 initiative, elaborated on the types of projects the new label seeks. He emphasized that genre, platform, or team size are not primary criteria.
"We are open to any team, at any stage, even prototypes, as long as the game strives for meaningful emotional territory and uses interactivity to take players there," Xue said. He added that "emotional" can encompass joy, chaos, humor, or melancholy—the common thread being whether the experience lingers after the console is turned off. Unlike many indie publishers that focus on sub‑$1 million budgets, Thatgamepublisher is prepared to back larger, AA‑scale endeavors. Xue explained that the publishing 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 noted, stressing the studio’s commitment to providing the resources necessary for creators to realize the strongest version of their games. Thatgamepublisher is positioning itself as a full‑service publisher, offering not only funding but also production planning, platform strategy, marketing, community management, and long‑term IP development. This comprehensive approach contrasts with other indie publishers that adopt a modular, funding‑only model.
Luke Keighran of Silver Lining Interactive remarked earlier this year that "the old school publishing model is dead" and that developers now prefer to pick and choose services that fit their specific needs. Xue confirmed that Thatgamepublisher can adopt a similarly modular arrangement when appropriate, but believes that emotionally ambitious projects often benefit from an integrated partnership where creative development, production, positioning, marketing, community, and platform strategy are tightly interwoven.
The ultimate goal, according to Xue, is to meet each project where it stands and shape a partnership that maximizes its potential. He points to the studio’s own history as proof of concept: "Our belief that games can connect people through shared emotional experiences has shaped everything we’ve made—from Flow and Flower to Journey and Sky.
We’ve learned that emotionally ambitious games need a different playbook. The heart of a project may not be evident 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." Drawing on more than 300 million downloads of Sky: Children of the Light and seven years of operating a live‑service emotional experience, Thatgamecompany believes it has the infrastructure and insight to help other studios scale without diluting the core feeling of their games.
By understanding each game's emotional truth, building from its community, and allowing genuine resonance to drive growth, Thatgamepublisher aims to amplify reach while staying faithful to the original vision. In summary, Thatgamepublisher represents a strategic expansion for Thatgamecompany, leveraging its financial success, audience demographics, and deep experience in crafting emotionally resonant games to empower a new generation of indie developers.
The label’s flexible, full‑service model, combined with a clear focus on emotional impact, positions it as a compelling partner for creators seeking to push the boundaries of what interactive media can achieve.