Over the weekend, certain news sites reported the the Entertainment Software Association (ESA) was canceling the Electronic Entertainment Expo (E3) as a response to several large game publishers pulling their support. However, the ESA had not issued an official statement on the matter one way or another, leading to a tense weekend for those in the industry, lingering questions in all of our minds. Was E3 going to be altered? Or would it be terminated outright?

Today, the ESA finally issued a statement announcing the fate of E3. The very carefully worded release begins with, "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 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 Doug Lowenstein, President of the ESA. "Over the years, it has become clear that we need a more intimate program, including higher quality, more personal dialog with the worldwide media, developers, retailers and other key industry audiences."

This E3 2007 will still be stationed in the city of Los Angeles, which the ESA described as a "great and supportive partner helping to build E3." The large trade show floor, perhaps the most visually demonstrative thing of the Expo, will not be present. Game demonstrations will still occur, but they will instead be given to members of the media, retail and development communities at small meetings and formal press events.

"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," said Lowenstein. "The new event ensures that there will be an effective and more efficient way for companies to get information to media, consumers, and others."

The ESA also acknowledged one of the major reasons (besides cost) for the erasure of the current E3 format. With the evolution of the industry, events that focus on a particular field in the industry (such as the Game Developers Conference), concentrate on a particular region (like the Tokyo Game Show or Games Convention in Leipzig) or "gamer days" that are held by particular companies (Sony, Nintendo, Microsoft, Konami, Square Enix and countless others) have displaced E3. Many in the industry have expressed that these smaller events are not only less pricey, but are also simply more effective than the gargantuan event that E3 has become.

"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," concluded Lowenstein.