Founded in 2002 by Lisa Stevens, a former Wizards of the Coast employee who left after Hasbro bought the company in 2000. WotC offered Stevens the opportunity to publish the Dragon, Dungeon and Star Wars Insider magazines which she had long expressed an interest in working on. Taking on many former WotC staffers like herself, Stevens created Paizo to be a magazine publisher. When Wizards of the Coast informed Paizo that their contract would not be renewed in September 2007, Paizo began the process of turning themselves into a publisher of games rather than magazines and in March of 2008 announced the Pathfinder game - based on the Dungeons and Dragons 3.5 OGL.
Pathfinder has become a leader of the tabletop RPG market in its own right and Paizo contracts many Forgotten Realms luminaries to write content for the game such as Ari Marmell, Ed Greenwood, Elaine Cunningham, Eric L. Boyd, Jeff Grubb, R.A. Salvatore, Richard Baker Richard Lee Byers and Stephen E. Schend.