Given the stagnant growth--and in some cases, sales declines--in the video-game industry, publishers and trade organizations have agreed to scale back the reckless spending surrounding the industry's
big event, the Electronic Entertainment Expo, held in Los Angeles every spring.
Business Week applauds the move. The expo--a time for game developers, publishers, distributors, and marketers to
meet--had devolved into an orgy for game enthusiasts. Last year's show attracted a whopping 60,000 people; the Entertainment Software Association points out that the event had become so big it was not
effective in helping exhibitors to reach their intended audience. Next year's E3 will be less spectacular, "more intimate," and invitation-only. Analysts say the downsizing is good for bigger game
publishers and hardware makers, which have felt pressure in the past to spend $10 million to $20 million to stage something huge--a new game, a new console, a partnership, etc. The losers, however,
could be the little guys, who benefited from the publicity generated by the massive attendance.
Read the whole story at Business Week »