E3 To Be Restructured

It looks like the Electronic Entertainment Expo (E3) is an unfortunate victim of it's own success. Next-Gen.biz is reporting that the game industry's largest annual trade event will be no more. Whispers have been circulating that publishers and exhibitors are dropping out for next year as they can no longer foot the huge bill that goes with participating at E3 (the floor space, parties, and everything else that goes with it), especially since costs have been growing as rapidly as the size and popularity of the event itself.

From Next gen...

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.

Gamespot is reporting things differently, saying that the event will be greatly scaled down instead..

GameSpot spoke with informed game industry sources late Friday and Saturday and learned that the show would radically shrink in size and move from its usual Los Angeles Convention Center (LACC) venue to a smaller location.

Sources said that rather than fill the 540,000 square feet of the cavernous LACC, the show will take place at a location that would support exhibitors in meeting room space only, with companies showing their wares to a select group of attendees numbering in the hundreds rather than thousands.

Gamespot also comment on the possible impact of a downscaled E3 will have for developers who depend on it to promote their titles and signing publisher deals, which must be a concern for our local developers. With Government support, the Australian contigent of game developers sent to E3 in 2005 made a reported $35 million worth of deals, and a $95 million windfall from this year's E3.

The Entertainment Software Association is expected to announce within the next 48 hours on the future of E3.