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EXCLUSIVE: E3 FINISHED

By Colin Campbell

Senior industry sources have revealed to Next-Gen.Biz that the E3 industry event, in its present form, has been cancelled for next year and the foreseeable future.

The Entertainment Software Association (ESA) shindig has been a staple of game industry life since the mid-1990s. However, we understand the larger exhibitors have jointly decided that the costs of the event do not justify the returns, generally measured in media exposure.

Publishers believe the multi-million dollar budgets would be better spent on more company-focused events that bring attention to their own product lines rather than the industry as a whole.

Well placed sources say the news that larger exhibitors were pulling out had prompted urgent meetings among publishing executives. They decided that, without the support of the larger software publishers and hardware manufacturers, there would be no point in continuing.

ESA president Doug Lowenstein will likely announce the news some time within the next 48 hours, possibly on Monday. It's likely that the ESA will seek to limit the damage by organizing some form of lesser event in May, possibly even with the E3 brand, but this will be no more than a fig-leaf. The days of an industry event attended by all the major publishers, spending big money, are gone.

Calls to ESA staff are not being returned at present.

E3 game trade show not cancelled, but will be downsized
7/30/2006 4:08:48 PM, by Ken Fisher

Contrary to reports across the web, E3 has not been cancelled. Next-Gen had hoped that they would blow the lid off of a hot story by revealing that the show had been cancelled, but some quick fact checking shows that they are simply incorrect.

Sources close to the Entertainment Software Association (ESA) tell Ars Technica that the show can and will go on, but that big changes are planned. The "Electronic Entertainment Expo" (hence E3) started in 1995 as a small but interesting annual convention for gaming, following roughly six months after the once-popular annual COMDEX computer trade-show in Las Vegas. The show has grown immensely in popularity, and that appears to be the problem.

Sources say that two major factors have led to the decision to transition the show to a more "closed-door" event. Both, coincidentally, were major reasons for COMDEX shutting down: cost and access. If you've never been to E3, let me describe it like this: long lines, truckloads of people, video games everywhere, and really fancy "booths" (where booth sometimes means basketball court-sized display area). As with COMDEX, the major players are reportedly tired of how much it costs to put on the dog and pony show. Turns out it costs millions of dollars to put the sparkle into an E3 blingfest.

Now in theory, these shows are primarily geared towards connecting businesspeople. To that end, E3 was (again, in theory) only open to industry folks and journalists. In recent years, however, the number of people attending have skyrocketed, in part because E3 registration was a moderately open process. The show was getting huge, and just as with COMDEX, the show-within-a-show was born. What I mean by that is that it was no longer enough to go to the show. To talk to someone who actually knew what they were talking about, you'd need an appointment. To see something really special, really worth writing about, you'd need to meet behind closed doors. To find out anything of interest about something that wasn't on a placard, you needed to get in with the right people. With COMDEX the practice started to get ridiculous; major players officially skipped the show but set up camp in Vegas hotels and had their sideshows for a fraction of the cost.

One source I spoke with told me that media access is indeed a problem, but it probably does not factor in greatly to the decision to downsize the show. Nevertheless, there are plenty of complaints from insiders about how "blogging" in particular has made the shows more difficult, if only because floor people are instructed to speak only of what they are approved to speak of, lest another half-baked headline make the rounds.

Possibly more influential is the fact that E3 is viewed by some people as being the Sony-Microsoft-Nintendo show, which it is not supposed to be. Smaller players have complained about this before, but really, that's just the nature of a tradeshow. Not everyone can be Wil Wheaton, can they?

In all seriousness, the days of the big consumer technology trade shows are indeed passing. At the end of the day, the reason is very simple: ten years ago, you needed a big trade show to generate buzz and hype. It used to be that COMDEX was a special event because so much new stuff was unveiled, and this was the only way to see it. Now, however, information comes down the pipe faster than ever, and companies are wondering if there's really any benefit to spending the big money on displays only to share the floor with other competitors looking to out-wow attendees. It was a media circus for the days when you needed a circus to attract media attention. I don't think anyone would say that consumer electronics is lacking for attention these days.

Official word from the ESA should be out tomorrow. Keep an eye on Opposable Thumbs for additional updates. We'll follow-up there.

Darksider wrote:How did you guys go to E3?

I thought it was industry and gaming press only.

Darksider wrote:How did you guys go to E3?

I thought it was industry and gaming press only.

Darksider wrote:How did you guys go to E3?

I thought it was industry and gaming press only.

Following multiple media reports over the weekend indicating that the ESA trade organization, which runs the massive E3 trade organization, would be making an announcement over E3's future, the ESA has now released an official statement on the matter, reprinted in full below:

"To better address the needs of today’s global computer and video game industry, the 2007 Electronic Entertainment Expo (E3Expo) is evolving into a more intimate event focused on targeted, personalized meetings and activities, the Entertainment Software Association (ESA) announced today.

“The world of interactive entertainment has changed since E3Expo was created 12 years ago. At that time we were focused on establishing the industry and securing orders for the holiday season,” said Douglas Lowenstein, President of the ESA, the trade association representing U.S. computer and video game publishers and the owner of E3Expo. “Over the years, it has become clear that we need a more intimate program, including higher quality, more personal dialogue with the worldwide media, developers, retailers and other key industry audiences.”

The new E3Expo will take shape over the next several months. As currently envisioned, it will still take place in Los Angeles, described by ESA as a “great and supportive partner helping to build E3.” It will focus on press events and small meetings with media, retail, development, and other key sectors. While there will be opportunities for game demonstrations, E3Expo 2007 will not feature the large trade show environment of previous years.

“E3Expo remains an important event for the industry and we want to keep that sense of excitement and interest, ensuring that the human and financial resources crucial to its success can be deployed productively to create an exciting new format to meet the needs of the industry. The new event ensures that there will be an effective and more efficient way for companies to get information to media, consumers, and others,” said Lowenstein.

Additionally, the evolution of the video game industry into a vibrant and expanding global market has led to the creation of major events in different regions, such as the Games Convention in Leipzig, the Tokyo Game Show, and company-specific events held by Sony, Nintendo, Microsoft, and others around the world. As a result, Lowenstein said, “It is no longer necessary or efficient to have a single industry ‘mega-show’. By refocusing on a highly-targeted event, we think we can do a better job serving our members and the industry as a whole, and our members are energized about creating this new E3.”

Additional details about the new E3Expo event will be forthcoming in the next few months."

Darksider wrote:How did you guys go to E3?

I thought it was industry and gaming press only.

Praxis wrote:I hope they still keep the expo going. This year was my first E3 and I'd hate for it to be my last. The idea of turning it in to smaller more pointed events doesn't sit well with me; it's likely that the large companies will just hold their own events, and I can't afford to go to more than one or two events a year.