In April 2018, Skybound announced the formation of Skybound Games, a publishing division focused on indie games, while also forming a mobile division Howyaknow, LLC. Coinciding with the announcement, the company also signed publishing deals for console versions of the games Slime Rancher and The Long Dark.

In October 2018, due to the collapse of Telltale Games, Skybound Games announced they would be working on finishing up the final two episodes of The Walking Dead: The Final Season, "Broken Toys" and "Take Us Back", to end the game adaptation of their series. In addition to continued digital release, Skybound Games also released physical editions of the game for PlayStation 4, Xbox One, and Nintendo Switch.

In February 2019, Skybound Games announced plans to release the remastered versions of six classic Dungeon & Dragons games: Baldur's Gate, Baldur's Gate II, Baldur's Gate: Siege of Dragonspear, Icewind Dale, Planescape: Torment, and Neverwinter Nights, developed for modern computers by Beamdog, as console versions (both as physical and digital) later in the year. In 2020, Skybound Entertainment raised a new round of funding from the gaming company Com2uS Studios. The two companies signed a deal to develop a The Walking Dead mobile game.