Report: E3 2007’s Santa Monica Venue Cost ESA $5 Million

Kotaku is reporting today that the ESA paid a $5 million penalty last year to move E3 out of Los Angeles and into nearby Santa Monica. The penalty was triggered by the ESA’s decision to break a contractual agreement to hold the event in L.A. through 2012.

According to the report, the penalty, coupled with significantly lower revenues from the downsized E3 resulted in significant dues increases for member companies. The jump in dues may have triggered Activision, Vivendi and LucasArts to rescind their membership in the ESA, which represents the interests of US video game publishers.

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