It means they need to get strategic and start preparing content and licenses for the systems that are going to bring them in revenue.
Paizo have lost significant market share with the success of 5e and on top of that WOTC have increased the size of that market beyond what it was previously. WOTC have just reported that 2017 was their best year ever for sales.
Source
Paizo will want some of that pie which I suspect will mean they will lower the complexity of Pathfinder 2.0 in order to attract 5e players but will in turn piss of 1.0 players. They will predict this and try to find a way to attract both crowds.
Safe to say its going to be really interesting to see what happens next.
LWD will no doubt already be in discussions with Paizo on support for 2.0. I would be surprised if they did not know about this long before now.
One thing is certain though. The majority of the potential market for Realm Works is not playing the primary system they support. If they want to be truly successful they need to adapt and speed up in order to support the systems that people are playing because that is where the $$ is.
The data below paints a picture of what people are playing. Both Roll20 and Fantasy Grounds only recently started supporting Pathfinder but I have confirmed the similar split is occurring in the sale of pdf and print material through Frog God Games. 2018 will show better data but I suspect the split between Pathfinder and 5e will remain similar. DMsGuild has recently reported that it is now seeing more traffic than DriveThruRPG.
One important take away is this... Hero Lab, Hero Lab Online and Realm Works are not the most popular tools in their markets. It's niche software with the potential to appeal to a much larger player base.
