Paizo proved that the Open Game License allowed a rival to fork D&D itself, and after the 2023 license crisis it led the industry's move to the independent ORC license.
History
Paizo grew out of Wizards of the Coast. In 2002 Wizards decided to stop publishing its periodicals in-house, and Lisa Stevens, an early Wizards employee and former vice president, formed Paizo Publishing with Vic Wertz and Johnny Wilson to take over Dragon and Dungeon under license (see The Strategic Review & Dragon). The name comes from the Greek for "I play." Erik Mona, editor of Dragon, became publisher, and James Jacobs of Dungeon would oversee the company's adventures. Paizo also briefly revived the venerable science fiction magazine Amazing Stories in 2004.
In early 2007 Wizards announced it would not renew the license, and the magazines ended with the September 2007 issues. Paizo had already found a new format. Its Pathfinder Adventure Path, launched in 2007, was a monthly book-length installment of a linked campaign, the long-form structure Dungeon had pioneered, set in Paizo's own world of Golarion.
Then Wizards announced D&D's fourth edition, a sharp break from 3.5 with a more restrictive license. Paizo decided not to follow. On March 18, 2008, it announced the Pathfinder Roleplaying Game, a revision of the D&D 3.5 rules released under the Open Game License, with a public playtest open to anyone. Lead designer Jason Bulmahn's core rulebook appeared in August 2009, backed by organized play through the Pathfinder Society. Many players who liked 3.5 moved with it, and by the early 2010s industry sales trackers reported Pathfinder outselling D&D for a time. A science-fantasy sibling, Starfinder, followed in 2017, and Pathfinder Second Edition, substantially redesigned, in 2019.
The 2020s tested the company. CEO Lisa Stevens stepped back from daily operations in 2020. In October 2021 employees unionized as United Paizo Workers with the Communications Workers of America, and Paizo voluntarily recognized the union. When leaks in January 2023 showed Wizards planning to revise the Open Game License, Paizo announced the Open RPG Creative License (ORC), a system-neutral, irrevocable license to be held by a neutral party, and other publishers joined it. Customers flocked to Pathfinder, and Paizo said it sold an eight-month supply of its core rulebook in two weeks. It then "remastered" Pathfinder's second edition, released on November 15, 2023, to remove OGL-derived material, and announced Starfinder Second Edition under ORC. In 2025 its exclusive distributor, Diamond Comic Distributors, went bankrupt with some $10 million of Paizo stock caught in the proceedings. Paizo moved to Independent Publishers Group, and in June 2026 announced layoffs and reduced output. In August 2026 it announced a partnership with DriveThruRPG to sell its digital catalog and print books.
Notable work
Dragon and Dungeon (2002–07); the Pathfinder Adventure Paths, beginning with Rise of the Runelords (2007); the Pathfinder RPG (2009) and its second edition (2019); Starfinder; the Pathfinder Adventure Card Game; and the Planet Stories line of pulp reprints.
Legacy
Pathfinder showed that the Open Game License meant what it said: a competitor could take the rules of the world's most famous RPG and build a successful rival on them. It kept 3.5-style play thriving for a decade, trained designers and freelancers across the industry, and made Paizo the natural leader when trust in Wizards collapsed in 2023. The ORC license it sponsored is part of the lasting reshaping of how tabletop RPGs are shared.
Marginalia
- The name comes from the Greek paízō, 'I play.'
- Paizo was formed in 2002 to publish Dragon and Dungeon under license from Wizards of the Coast; the license ran from September 2002 to September 2007.
- Co-founder Lisa Stevens had been an early Wizards of the Coast employee and helped examine TSR's finances for Wizards in 1997.
- Paizo revived Amazing Stories in 2004, but the magazine was put on hiatus in 2005 and canceled in 2006.
- Paizo announced the Pathfinder Roleplaying Game, built on the D&D 3.5 System Reference Document, on March 18, 2008, with a public playtest.
- In October 2021 Paizo employees formed United Paizo Workers with the Communications Workers of America, a first for the tabletop RPG industry.
- During the January 2023 OGL controversy Paizo said it sold an eight-month supply of the Pathfinder Core Rulebook in two weeks.
Quick answers
- What is Paizo?
- The Seattle-area company that took over Dragon and Dungeon magazines in 2002, lost them in 2007, and answered by building Pathfinder, the game that kept D&D 3.5 alive and outsold D&D for a time.
- When was Paizo founded?
- Paizo was founded in 2002 and is based in Redmond, Washington.
- Who founded Paizo?
- Lisa Stevens, Vic Wertz and Johnny Wilson, veterans of Wizards of the Coast.
- What is Paizo known for?
- Pathfinder Roleplaying Game.
- What happened to Paizo?
- Independent and still publishing; in 2026 it cut staff and output after the bankruptcy of its distributor, Diamond, and moved distribution to Independent Publishers Group.
