Too Big, Too Much: Videogame Expo Gets a Downsizing

By NICK WINGFIELD
Wall Street Journal

August 1, 2006; Page B3

http://online.wsj.com/article/SB115436878362822445.html?mod=technology_main_whats_news


The Electronic Entertainment Expo, the videogame industry's raucous annual 
conference, will be getting a lot quieter.

Members of the game industry's main trade group, the Entertainment Software 
Association, voted to dramatically scale back the annual May conference 
amid growing disenchantment among exhibitors with the spiraling costs of 
the show, known as E3. Instead of a big event that has traditionally taken 
up a sprawling convention center in Los Angeles and attracted more than 
60,000 attendees, the association plans to produce a much smaller event in 
July 2007.

The smaller version, tentatively titled the E3 Media Festival, could occupy 
suites and conference rooms at two Los Angeles hotels with a target 
attendance of about 5,000, said Doug Lowenstein, president of the ESA, 
which voted to make the change Wednesday.

E3 was known as one of the glitziest, most frenetic trade shows, where 
games companies showed off their latest offerings from massive booths, 
often at ear-splitting volumes. But game companies have grumbled that the 
investment required to make a splash at E3, which can cost several million 
dollars, isn't worth it. When it was created a little more than a decade 
ago, E3 was primarily an event where game companies could meet buyers for 
major retailers, who would decide which game products to purchase.

In recent years, very little retail ordering of games has occurred at E3 
and the show has evolved into an event where game companies attempt to grab 
media attention for products, Mr. Lowenstein said. "Some companies were 
frustrated because E3 was such a huge, sweeping event it became 
increasingly difficult to get their messages out," he said.

Some larger companies, like Sony Corp., Microsoft Corp. and Electronic Arts 
Inc., now hold their own independent events for media and others. "The 
industry has gotten to a place where we can afford to have more-intimate or 
more-private meetings in different types of settings," said Tammy 
Schachter, a spokeswoman for game publisher EA.

Mr. Lowenstein said the changes to E3 aren't related to the game industry's 
sales slump. The industry is moving to a new generation of game-playing 
hardware, a shift that typically causes a slowdown in game sales.


================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204
Voice: 713-743-3923  Fax: 713-743-3927
antunes at uh dot edu



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