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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  1. 0
    Loudspeaker says:

    Well that certainly makes a lot of sense.  I’d be ticked if someone made a decision that cost big dollars just to have them decide it’s YOUR problem to fix their mistake.  Not to mention I’m sure these companies made their problems clear before jumping ship.  ESA has failed miserably.

    "Volume helps to get a point across but sharp teeth are better."

  2. 0
    Anonymous says:

    The ESA made E3 pointless, pure and simple.

    Their first mistake I think was the invitation only, it alienated several gaming publications, and scaling it back made it far less exciting, so I doubt anyone even wanted to attend.

    And giving away swag, E3 was basically Disneyland using Cartman’s "You can’t come" taunt.


    They really should consider a show just for consumers, oh, wait, sorry, we’re all criminals.


  3. 0
    Freyar says:

    That’s the problem though, E3 wasn’t meant to be a show for consumers, and it was drifting away from it’s original purpose.

    I do see a valid reason now as to why the three left the ESA, and even better why a few are choosing not to participate. The awards debacle is interesting though, please keep us up to date on that, GP.


    —- There is a limit for both politicians against video games, and video games against politicians.

  4. 0
    DeusPayne ( User Karma: 0 ) says:

    Man…. the ESA fucked over E3 hardcore. What were they thinking? "Ooh… I have an idea. Let’s alienate all the consumers by banning them from attending, then lets downgrade it’s size so it makes less money, then lets break contract and move somewhere else costing us $5 mil more. It’s brilliant"

  5. 0
    Xlorep DarkHelm says:

    Now the question is…. did the ESA learn from their mistake?

    "I’m not responcabel fer my comuter’s spleling errnors." — Xlorep DarkHelm

  6. 0
    Aliasalpha says:

    Hehe the ESA sounds like most Australian ISPs

    Frankly the E3 lost all relevance for me when the most anticipated feature on most of the sites reporting on it was the booth babe gallery. An appropriate analogy would be the superbowl, I’m old enough to remember when it used to be about football rather than ads & half time bollocks, it used to be worth watching & now it’s just a crap waste of transmission bandwidth.

    I liked the idea of a reigned in E3, a smaller event focussing on the business at hand rather than the superficial flashiness but, like most good ideas, they screwed it up.

  7. 0
    jds says:

    It all becomes so apparent now… The ESA’s actions resulted in the members paying more dues so the members left.




    ESA, your hens have come home to roost.



    . . Wisdom begins in wonder. – Socrates . .

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