The ESA confirmed the rumors that spread over the weekend regarding a change in the format of E3. E3 will not be cancelled outright, but it will indeed be a smaller event. E3 2007 is going to focus more on “press events and small meetings with media, retail, development, and other key sectors,” said Doug Lowenstein, president of the ESA. The ESA believes that changes in the interactive entertainment industry since E3 was created have nixed the need for a huge, centralized show, and that a more intimate program, including more dialogue between the industry and media is necessary. ESA still plans to call the event E3 and hold it in Los Angeles, but that’s where the similarities end. The expo will now focus on “press events and small meetings with media, retail, development, and other key sectors,” and thus “will not feature the large trade show environment of previous years.” Lowenstein also mentioned that a single industry ‘mega-show’ is “no longer necessary or efficient” because of the creation of several other major events across the world such as the Tokyo Game Show, the Games convention in Leipzig, and company events held by Microsoft, Nintendo, Sony and others.

E3 2007 (and beyond presumable) will no longer be the dazzlefest gamers across the world have come to know and love. More news on the expo will come in the next few months.

Update: The WSJ is reporting that ESA's president, Doug Lowenstein, has tentatively renamed E3 the "E3 Media Festival." They also say that the capacity will be an estimated 5,000, down from 2006's attendance of 60,000. Lowenstein stated that the new E3 Media Festival could occupy suites and conference rooms at two Los Angeles hotels. Apparently some companies because frustrated because E3 became so huge, making it difficult to get their messages out. One thing is certain, E3 definitely will not be the flashy, video game glamuor-fest like years past.

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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.