E3 has been video gaming’s largest stage for a number of years, but changes to the industry are altering the event and calling into question its future existence. We look at where the event has been, what’s happening to it, and why (in the end) developers and publishers will likely be okay.
A Brief History of E3
When E3 was first held in 1995, it was primarily done for the benefit for the multitude of retail buyers. Retail was the only real means of selling video games in the ’90s, and the number of units they would buy for hardware and software was a huge part of the business for both platform makers like Sony and Nintendo, but also for Walmart, Toys ‘R Us and Electronics Boutique. That it had all of the newest games was a side benefit for press outlets, both ones that were dedicated enthusiast magazines and more general newspapers.
As time has gone on, the number of buyers in the game industry has diminished while the press relevance increased. What was at first the secondary effect of E3 eventually became the main focus – making games interesting for the multitude of press attending so that they could in turn tell their readers what to be excited about in the coming year. While there were still business meetings held behind closed doors, the pomp and circumstance surrounding the show had taken over, and feeding hype for the coming year became a huge part of E3.
The Changing Nature of Coverage
A large industry trade show to show off all the latest wares is still an event that potentially has merit. Even an event that is exclusively for industry insiders (the press, retailers and publishers) certainly has its place. The issue is a logistical one: is there a need for an event where every major member of the AAA publishing industry and the press meet up at one time?
It used to be necessary for the industry to fly out to one event to get hands-on with the latest hardware and games, along with getting the scoop on all the most important news. Now that idea seems quaint, given the ability to stream live events with ease, allowing publishers to get the word out unimpeded by the press to the masses.. Additionally, it easy to provide codes to the press to download and play demos without even having to leave their offices – the necessity of having press in a particular place to play a game isn’t a necessary step anymore.
The use of streaming has lead to some contradictory moments for the press; while it’s generally considered an honor to be invited to witness the press conferences for Sony and Microsoft in person, it actually makes it more difficult to actually report on the event. Those who have been in the industry a while know how hard it can be to cover the press conferences while actually attending the events, given limited wi-fi and other issues, while the streams are available and provide the same information.
Publishers Abandon the Format
With the necessity of rending space in the Los Angeles Convention Center specifically seeming increasingly dubious, it wasn’t surprising when Electronic Arts announced they would be pulling out of the show floor. They’ll still be drafting off of E3 with their own event that will be open to the public, but the large booth space they have traditionally occupied will be open.
Activision has also confirmed that it will not be at the E3 show floor. Despite their size as a company, the decision probably has grounding in how few games the company is planning on releasing this year. Call of Duty: Infinite Warfare, Skylanders Imaginators and the latest Destiny expansion are the three main titles, and it is likely that they’ll receive some time during the Sony/Microsoft press conferences and probably some space devoted to them in the platform holder’s booths. Having a separate area just for those three games (all of which are iterations on established franchises) just doesn’t make a lot of sense.
Wargaming has pulled out of the event, though this did not surprise close observers of the industry. The World of Tanks publisher has had an outsized presence at the last several E3s, including having full on tanks on display for attendees to gawk at and the press to snap pictures of. Still, a representative said it is best when it comes to E3 actually being a good investment for Wargaming.
“From a company perspective, we’re focusing a large majority of activities on events focused on our players and community,” said Wargaming in a statement to VentureBeat. “Whether it’s a small group of players or hundreds at one of our player gatherings, they’re our main priority. From a strictly business perspective, E3 just doesn’t fit our current direction. It’s a show that is very centralized on retail product, and as a free-to-play digital download gaming company, we’ve realized that while the show may be a good fit for lots of other publishers and developers, it’s currently not a great fit for us.”
Finally, Disney pulled out and it perhaps should have been seen as a sign at the time. Now that Disney Infinity is winding down for good, they would have effectively nothing to show at E3. Despite their offerings at E3 attracting only modest attention, they typically had one of the largest presences at the expo, so their decision will likely reduce the floorspace of the expo significantly. Nintendo has had a diminished presence at E3 since 2013, choosing to have a Nintendo Direct to make major announcements rather than a traditional press conference at the event. With the impending NX system, some theorized that this would be the year they would return to a full stage presentation. Not only is that not the case, but Nintendo’s new system won’t even be at E3. Nintendo revealed during an investor’s call that they will not be doing the first major reveal of its NX hardware at E3 2016, almost passing saying that they won’t be showing off the hardware for the first time until sometime later in 2016. Their E3 presence will focus exclusively on the new Legend of Zelda on the Wii U. This will be the first time Nintendo won’t reveal the launch line up of software for a new home console release at E3 in the 21st century. The other major hardware reveal, while not as significant as a brand new console, is the PS4 Neo. News about it has been widely leaked and it was expected that Sony would oblige by confirming it at E3. Instead, President and Group CEO of Sony Interactive Entertainment Andrew House said in an interview that, while the system does exist and will support 4K televisions, it will not be present at E3. E3 is an institution for a generation of hardcore gamers, to the point where it’s almost difficult to fathom the early summer without it. However, it’s becoming rapidly apparent that E3 in its current format won’t survive forever. E3 might make some or all of its days available for the public to increase its appeal (they already have a side event planned which feels like a half-step in this direction). Having some days exclusive to the press and industry insiders would be similar to Gamescom and Tokyo Game Show. Regardless of the ultimate fate of E3, neither large publishers, small developers or gamers at large should be that worried. The larger studios, (EA, Ubisoft, 2K Games) would be able to attract enough attention at their own events if they would choose to hold them. In some respects, they might benefit from this more focused approach, since they wouldn’t be competing for attention from the same audience. As for indies (whose presence is limited at E3 anyway) there are plenty of ways to attract attention for their games. Open betas and streaming have allowed smaller games to establish audiences even before they officially release. Events like PAX have become showcases of indie titles. Whether it’s through an online stream or via an attended event, gamers will be able to get their info about their latest games. The industry has changed radically from one entirely dependent on packaged goods to an increasingly digital one where small developers are redefining video games every day. This democratization has followed with communication as well, and the industry as a whole is all the richer for it. So as sure as there are new video games releasing, there will be ways to hype them up, even if they don’t have a mega-booth at the Los Angeles Convention Center or are announced at a major press conference.
\It’s the End of E3 as We Know it (and I feel Fine)
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