Quote:
ESA confirms smaller E3 in '07
Annual expo to become "more intimate event," focus on press events, small meetings.
By Staff, GameSpot
Posted Jul 31, 2006 11:19 am PT
The Entertainment Software Association (ESA) has confirmed reports that its Electronic Entertainment Expo (E3) will be undergoing changes for next year. According to the trade group, the convention will be "evolving into a more intimate event focused on targeted, personalized meetings and activities."
The show will still be held in Los Angeles, but it won't have the "large trade show environment" of previous years. The city has previously estimated that the show brings in about $20 million in direct spending by the 60,000 attendees and exhibitors.
Sources have revealed to GameSpot that executive-level ESA staff is already addressing the fallout to the City of Los Angeles, impact on other groups who have stood to gain from the annual event, as well as who was behind the restructuring of the show.
Attorney Daniel Offner of Offner and Anderson, P.C., a law firm that lists numerous E3 exhibitors as clients past and present, thinks not. "I'd be surprised if the city took this lying down," Offner told GameSpot. "I'm sure the city will take a close look at their rights and try and protect them."
One group that has no specific enforceable rights, but would still be impacted by a smaller E3, is the taxi drivers of Los Angeles.
Nettabai Ahmed, president of Los Angeles' Independent Taxi, said E3 provided an unparalleled boost to his driver's income each year.
"The youngsters spend a lot of money and they don't stay in one space," Ahmed said. "For taxis, it was really a good convention for us. … A regular convention boosts the driver's income by about 25-30 percent. But E3, it goes up to 50 percent boost in their income."
Ahmed estimated that each of the city's 4,000-5,000 taxi drivers takes in an extra $500-$700 during the expo. That's not only the largest bump in income the driver's get each year, Ahmed said, but the largest they've received in decades, bested only by the 1994 World Cup and the 1984 Olympics.
Ahmed said any loss of E3 income will be difficult to replace for the city's drivers, who have seen a number of conventions leave Los Angeles over the last five years. Additionally, sources have come forward to update GameSpot as to how the ESA will recoup funds derived from the show itself--funds based on fees to exhibit as well as on-site marketing options. Those sources said a number of major publishers have agreed to pay the ESA as much as $5 million each, in effect, making up for revenues lost. A second source mentioned Sony, Microsoft, Electronic Arts, and THQ as publishers most interested in the show being downsized.
The ESA's official statement detailing the changes follows:
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.
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