Observed Signal · Jul 9, 2026 · Partnership · Source: PocketGamer.biz · Impact: 2/5 · Sentiment: Neutral
Thatgamecompany and NetEase grew Sky's China community
SJ Xue, head of corporate development at Thatgamecompany, describes the company's partnership with NetEase to publish Sky: Children of the Light in China. Drawing on experience from both sides of the deal, Xue says capital and market access get a partnership started but long-term success depends on trust, shared ownership, and day-to-day collaboration across engineering, marketing and live-ops teams. NetEase contributed deep local expertise in live operations, community engagement and cultural marketing while Thatgamecompany retained creative stewardship of Sky. Xue advises studios evaluating cross-border partners to prioritise the people, operational commitment and mutual respect over contract terms alone. The interview was published ahead of Xue’s PGC Summit Shanghai panel on publishing in China.
Practical, operational insight into cross-border game publishing and community building — valuable to studios and publishers but not a major industry-shifting announcement.
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Key Takeaways & Evidence Grounding
- Thatgamecompany partnered with NetEase to publish Sky: Children of the Light in China.
- SJ Xue is head of corporate development at Thatgamecompany and previously worked at NetEase, where he helped invest in the studio.
- The partnership involves close, cross‑timezone co-development: engineers from both companies collaborate in shared channels and work sessions.
- NetEase provided operational expertise in live operations, community engagement and local marketing, complementing Thatgamecompany's creative stewardship.
- SJ Xue was speaking ahead of a PGC Summit Shanghai panel on publishing in China scheduled for July 29.
Connected Companies & Entities
2 Entities mapped“Before joining Thatgamecompany, I spent several years at NetEase where I was part of the team that invested in the studio....”
“Ahead of his PGC Summit Shanghai panel on publishing in China on July 29th, SJ Xue ... talks to PocketGamer.biz about partnering with NetEas...”
Related Market Signals & Shifts
Recent verified developments and strategic activity across this market segment.
How to Navigate China's Massive Games Market
At PGC Summit Shanghai, industry executives from Habby, Thatgamecompany, Kuuasema and MyGamez discussed strategies for international studios entering China’s games market. Panelists emphasised finding the right local publishing partner, preparing for a months-long licensing process, and leveraging local marketing channels and influencers. User acquisition in China tends to cluster around the largest ad networks and social platforms, campaigns can shift rapidly, and influencer marketing and fast-paced live ops are important. Panelists also said monetisation strategies for titles like Sky remain consistent globally rather than tailored to a single region, and advised developers to start groundwork early and consult multiple local stakeholders (publishers, stores, platforms, influencers) before launch.
MyGamez Urges Co-Publishing as China Entry Route
MyGamez co-founder and CEO Mikael Leinonen told Pocket Gamer Connects Summit Shanghai that China remains the largest growth opportunity for global game developers but is difficult to enter. MyGamez advocates a co-publishing model where the original developer retains control and operates the game while a local partner supplies China-specific expertise, localisation and operations — rather than transferring source code or selling IP. Leinonen cited China’s share of global gaming revenues (around 30%) and long-running examples such as MyGamez’s publication of Hill Climb Racing in China since 2014 (700m+ Android downloads across the titles) to illustrate the market scale. He emphasised long-term partnerships, developer transparency, IP retention and the need for investment and patience to succeed in China.
Publishers Return to China for Long-Term Growth
MyGamez CEO and co-founder Mikael Leinonen told Pocket Gamer Connects Summit Shanghai that global publishers are returning to China with longer-term, strategic plans rather than seeking quick wins. Leinonen noted China remains difficult for foreign entrants: companies typically require a local partner, must pass a months-long content approval process, and obtain an ISBN licence to release games. Following prior regulatory disruptions, studios are adopting five-year approaches, allocating proper resourcing and organisational expertise to increase their chances of long-term success in China’s dynamic and competitive games market, which accounts for roughly 30% of global games revenue.
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