What makes old Doug worthy of standing alongside Sony's Ken Kutaragi and Nintendo of America founders Howard Lincoln and Minoru Arakawa? Lowenstein founded the ESA, the industry's most important and influential trade body, which helped establish video games as a respected cultural force. He helped lead the industry through rough times, combating the unconstitutional video game bills that the government considered following the wake of the Columbine school massacre. From the founding of the ESRB to the launch of E3, Lowenstein was there.

Plus, he's rather humble.

"This Lifetime Achievement Award represents the greatest professional honor I have ever received and I am grateful beyond words to the AIAS," said Lowenstein. "To be honored for doing a job I loved, and fighting for values I deeply hold on behalf of an industry and people I felt privileged to represent, let alone to be in the company of Howard Lincoln, Minoru Arakawa, and Ken Kutaragi, is profoundly humbling."

Lowenstein retired from his position as ESA president in 2006, but his contributions to the industry will be felt as long as we continue playing. Wise choice, Academy of Interactive Arts & Sciences.

... By refusing to respond, Doug dropped the ball. Thompson, finding no resistance from the top of the video game industry, was empowered to push harder. In retrospect, it's important to understand that bullying is the essence of Thompson's strategy. In fact, one of the tips he offers in his forgettable 2005 book, Out of Harm's Way, is "be mean." And, since caveman days, bullies have pushed and pushed until someone got up the nerve to push back.

Doug never pushed back.

Instead, Lowenstein's ESA operated in a sort of la-la land in which Jack Thompson did not exist. As a journalist, I soon learned not to waste my time asking the ESA to comment on anything Thompson said or did because, ostrich-like, they pretended that there was no Jack Thompson.

The gaming press, on the other hand, deserves kudos for helping reveal to the larger world the kind of vicious tactics Thompson employed in his culture crusade. And isn't that the function of a free press? You'd think that Doug Lowenstein, a former journalist, would understand that.

Maybe Lowenstein had his spam filter set to catch JT. One of the first things I discovered after starting at Kotaku is that we were treated to weekly — sometimes daily — updates on Jack Thompson from Jack Thompson. Sometimes long 'press releases,' sometimes — like this morning — random crap, like a picture of an iceberg. Of course JT is a loudmouthed, self-aggrandizing irritant, but he's very good at self-promotion — and the implication that we as a group were supposed to ignore it when someone who utilized underhanded, bullying tactics and sensationalist talk in an extremely high profile manner is ridiculous. Too much coverage at times? Probably. Justified coverage at times? Most definitely. 'Mainstream media' certainly wasn't going to delve into JT's abhorrent tactics like we as a group did.

Former ESA Boss Couldn't Be More Wrong about Jack Thompson Coverage [GamePolitics]

When news of Thompson's upcoming disbarment hit Kotaku, Lowenstein (who now works outside the industry) took the time to write me an email asking that I and other game journalists take this moment not to celebrate but to reflect on how culpable we were in helping create Thompson.

That letter for your consideration after the jump. Personally, I think that many (including Kotaku) over covered Thompson at times. But I also think it would be a disservice to completely ignore Thompson's legal proceedings which, at times, did find a home in the mainstream media. We even tried, at times, to apply an investigative slant to his coverage.

Ignoring a problem, I think, does not usually make it go away.

LETTER TO THE EDITOR

I read with more than passing interest the reports of Jack Thompson's disbarment. Amid all the celebrating among the game industry, one thing I hope emerges is some degree of self examination by the game press of its own complicity in making Thompson what he became.

The game press had a schizoid relationship with Thompson. He was the person they loved to vilify and the person they could not get enough of. Time and again, the game press — and mainstream press — would ask ESA to engage with, or respond to Thompson's latest excess. The media knew well that he was a charlatan who wholly lacked credibility. But hey, they said, he was news and could not be ignored. That was a cop out. It gave Thompson a platform he might not have had for as long as he did.

Mainstream outlets (The Today Show, CNN, Fox) were worse but the game press knew better. But he was the game press' crack. And even as they said privately he was a kook, they treated him as if he was a credible, fair minded critic. That represented an abdication of the critical filtering role the media should play.

There were and are legitimate grounds to criticize the game industry, and there were responsible and fair minded critics like Dave Walsh. But for the game press it was all Jack all the time. So as it takes delight in his apparent demise, it is a good time to contemplate whether the game media itself has matured . You help set the tone for mainstream media coverage and if you validate extremists you give license to the less informed to follow your lead.

It is 35 years since Pong. Your readers and the industry deserve a game media worthy of the best that journalism has to offer.

Doug Lowenstein

Gallagher confirmed during a conference call earlier today that he had no plans to reinstate the old E3 format and that his first duties as president of the ESA would be to "listen" and learn more about the videogame industry's ecosystem. He praised the work of the ESA and the ESRB, pointing to successful efforts by both organizations to protect videogames as speech protected by the First Amendment and educating parents on videogame content ratings.

The new ESA president also revealed that while he has much to learn about the entertainment software industry, he personally has gaming experience, having played titles like Halo and Mario Kart with his family.

Full press release from the ESA is after the jump. Michael McWhertor

Mike Gallagher Selected as New Entertainment Software Association President

Former Assistant Secretary of Commerce to Lead Video Game Association

May 17, 2007 - Washington, DC - Michael D. Gallagher will serve as the next president of the Entertainment Software Association (ESA), the trade group representing U.S. computer and video game publishers, the ESA announced today. Mr. Gallagher was a former Assistant Secretary of Commerce for Communications & Information, serving as the chief telecommunications and policy advisor to the Bush Administration. Gallagher will start the ESA position later this month.

"Mike's outstanding technology, policy, and government relations experience makes him a strong fit for the ESA, where issues like intellectual property, self-regulation, and industry social and economic contributions are at the forefront of the agenda," said Robbie Bach, chair of the ESA Board of Directors and president of Microsoft's Entertainment and Devices Division.

Mr. Gallagher is currently the Communications Practice chair at Perkins Coie, a leading international law firm offering a broad spectrum of legal services. Previously, he was Deputy Chief of Staff for Policy & Counselor to Secretary Donald L. Evans, secretary of Commerce. Mr. Gallagher is a member of both the Advisory Committee to the Secretary General of the United Nations for the Internet Governance Forum and the U.S. State Department Advisory Committee on Information and Communication Policy. Mr. Gallagher holds degrees in Economics and Political Science from the University of California, Berkeley and a Juris Doctor from the University of California, Los Angeles.

"Mike Gallagher is an experienced Washington hand - he understands the intersection of technology and policy and we look forward to working with him and the ESA to pursue our shared goals of keeping kids safe, empowering and educating parents, and protecting the First Amendment," said Jerry Berman, president of the Center for Democracy and Technology.

During Gallagher's four-year tenure at the Department of Commerce, he led successful efforts to pave the way for a number of new technologies and services, such as ultrawideband, broadband over powerlines, advanced wireless services, and millimeter wavelength networks. In addition, Mr. Gallagher developed and successfully advocated the US Government's policies on international Internet governance.

"It is a privilege to represent the dynamic entertainment software industry," said Mike Gallagher, newly-named president of the ESA. "With over two-thirds of American heads of households playing video games, and the tremendous opportunities available to the industry on every device — from consoles and PCs to handhelds and broadband enabled cell phones — the business is poised for tremendous growth. I look forward to working with federal and state leaders to foster an environment where the industry and its consumers can thrive."

The ESA is the U.S. association dedicated to serving the business and public affairs needs of the companies publishing interactive games for video game consoles, handheld devices, personal computers, and the Internet. ESA members collectively account for more than 90 percent of the $7.4 billion in entertainment software sales in the U.S. in 2006, and billions more in export sales of entertainment software. For more information about the ESA, please visit www.theESA.com.

###

In his final public speech as ESA lead, he reflected on the beginnings of the association, with a colorful recounting of the US Senate hearings spawned from then controversial violent video games Night Trap and Mortal Kombat.

Doug recalls, "Howard Lincoln, representing Nintendo, and Bill White, representing Sega, were testifying about the emergence of some of these, at the time, more violent video games. Howard was talking about how Nintendo was the socially responsible company, that in their version of Mortal Kombat there was no blood, and they were taking the high road. As he's going through his remarks, from below his seat Bill White lifts up and holds up for everyone to see a big red gun peripheral from a Nintendo system."

Then, "Suddenly you have this explosion of multimedia effects inside the senate room. The senators are delighted, but people outside the room are mortified. We came together and tried to create something that would represent this industry in some meaningful way. It was a rather inauspicious start."

Lowenstein went on to praise the work the ESA by saying that "Perceptions about this industry are very different from how they were 12 years ago. It was a backwater, a stepchild. It had no presence at all." Later saying, "This industry is taken more seriously than it ever has been before."

On first amendment rights and protected speech, Lowenstein illustrated his passion for his work, saying "This first amendment stuff is where the rubber hits the road. In my view there has been nothing more important that the ESA has done than putting its money and resources out there to defend your artistic freedom. And sometimes that's not easy. Plenty of things are put out as art that don't necessarily ennoble the culture, but they're protected. We made a decision at the ESA that we're going to defend constitutional freedoms no matter what. And I think we've done that, and we'll continue to do that."

Then adding, "The genius and the talent is still scratching the surface."

He also highlighted the important research work the organization was responsible for, data that is change mass perception, saying that "When people begin to understand how ubiquitous this industry has become, it changes their attitude." He also took time to make note of the ESA's anti-piracy work, spotlighting one unnamed employee who travels three weeks a month to train customs officers and law enforcement officials on cracking down on pirated games. Just for clarity's sake, Lowenstein reveals "He's not going to Maui. He's going to the least interesting places in the world. It shows incredible dedication."

Lowenstein has less kind words for many in the industry, what he referred to as his "pet peeves."

First up for a reaming?

"Publishers and developers who make controversial content then cut and run when it comes to defending their creative decisions. If you want to push the envelope, fine, but get out there and be responsible for it. Don't duck and cover when the shit hits the fan."

Next?

"The boss level chattering class. The Greek chorus who always think there's a better way to do something. It's very easy to pontificate why the ESA doesn't do something right. Then you look and... where are these people? Are they fighting the fight? Are they meeting with their senators? Are they making political contributions? I'm sick and tired of people in this industry complaining then sitting on their hands."

He then moved on to another target asking the gathered crowd "How many of you have signed up for the Video Game Voters Group?" A meager display of raised hands.

"That's pathetic. It makes me sick. What is the problem? You cannot expect this industry to grow if you continue to pass the buck. We're good, but we can't win the war without an army. Most of the people who have the most at stake are too lazy. If you want to be taken seriously as an industry you have to be able to ask yourself what you're willing to do. In the end we won't have enough soldiers to succeed."

Lowenstein also had some harsh words for the enthusiast press.

"I'm also annoyed with the game media. I think there's a lot of maturity that needs to happen with the game press. I think the game industry press needs a higher level of maturity and seriousness. Great other forms of media have powerful forms of critical components. The game industry press has the ability to push this industry to greater heights of success. People in the industry care more about what the game press say more than what I would ever say. I don't think the games press has asked enough of itself."

"In the last six months, I cant tell you how many ridiculous rumors I've read. I've heard people say that I'm leaving the ESA because I'm upset with what happened with the E3 decision. This stuff is stupid and it's wrong. It's lazy reporting. I think the game industry press is capable of much better."

"You know who gives Jack Thompson more press than anyone else? The games press legitimizes Jack Thompson. Everyone gets so upset that Jack Thompson has so much ability." Becoming visibly flustered, he ends with, "I just think it's nuts."

He also blasted gaming press outlets for ignoring the games as learning tool "Game industry press never write about this."

But Lowenstein let internet gossip queens and the gaming masses sum up the end of his career. Some select comments from the internets on news that Doug was leaving the ESA.

"This is so weird. I had a dream the other night that Lowenstein stepped down and I was the new president. I wish I was joking. My dreams are that stupid."

"The ESA has put a serious face on entertainment, not just keeping the government out of it, but helping to build a serious reputation for an industry previously seen as the kiddie side-kick of movies and music. You may or may not like the monster developers like EA and the mega-blockbuster treatment and pricing of games, but without the ESA, there would be no major investments into our industry and you'd probably be picking between Bubsy 8 and Bonk 12 for your action fix."

"I've never heard of this guy. I doubt most gamers have. Why should anyone care?"

"Who gives a shit? Don't you have real news to report."

Lowenstein ended with, "And that I think sums it up."

Well, Doug, thanks for giving a shit. Michael McWhertor

News of Lowenstein's new job comes weeks after we broke the news that the president of the ESA was stepping down from his position at the association.

The recently formed PEC has been in the works for months and will "aim to conduct research and provide information to the public about the private equity industry," according to an article by The Street. Brian Crecente

Private Equity's New Club [The Street]

Following the recent announcement that Entertainment Software Association president Doug Lowenstein is leaving to found a new investment industry trade association, full details of Lowenstein's new position have been announced.

The new body that Lowenstein will be heading is named the Private Equity Council, according to an official press statement, an association "...whose purpose will be to conduct research and provide information about the industry to policy makers and others interested in understanding what private equity is, how it operates and the increasingly important role this alternative asset class plays in the U.S. and global economy."

Initial members of PEC, all of whom are primarily engaged in the private equity industry, will include major companies such as the Apollo Management, Bain Capital, The Blackstone Group, The Carlyle Group, Hellman & Friedman, Kohlberg Kravis Roberts & Co. (KKR), Madison Dearborn Partners, Providence Equity Partners, Silver Lake Partners, Texas Pacific Group and Thomas H. Lee Partners.

Lowenstein will assume his new responsibilities at the PEC in February, 2007, stepping down from his presidency of the Entertainment Software Association. Lowenstein, despite having entered the industry from outside, was the first President of the ESA's predecessor organization, the Interactive Digital Software Association, founded in 1994. Details of a possible successor to Lowenstein as ESA president have not yet been revealed.

Game site GameDaily has picked its person of the year. While Nintendo President Satoru Iwata came in at #2, Blizzard's WoW mastermind Rob Pardo at #3 and the perpetually happy CliffyB at #4, the number one spot goes to the now departed ESA president Douglas Lowenstein. While Crecente broke this news of Lowenstein's exit, GameDaily mulls over why he mattered this year. Brian Ashcraft

Person of the Year [GameDaily]

Last week we broke the news that Entertainment Software Association president Doug Lowenstein was leaving next year the association he helped found.

Yesterday, the association confirmed the story and I had a chance to talk with Lowenstein about his career, the future of E3, the personal attacks and why he decided to leave both a job and an industry that he has been so long connected with.

"It's been obviously not an easy decision and not one I take lightly," Lowenstein told me in the phone interview. "This is a place I helped create and build and I have a lot of heart and soul in it, but I wouldn't leave unless I thought it was going to thrive and survive without me.

"This decision in no way reflects that I've lost interest."

Nintendo of America's Executive Vice President of Operations called Lowenstein a leading advocate for the game industry.

"Doug helped the video game industry grow from a minor curiosity at CES into a full-fledged member of the entertainment industry with a trade show larger than those for most rival forms of consumer entertainment," said Don James. "We thank him for his many years of dedicated service and for the high standards he has maintained."

The Entertainment Software Association, original named the Interactive Digital Software Association, was founded in 1994 by a group of six game development companies that met to talk about concerns raised by Sen. Joseph Lieberman about violent arcade game Mortal Kombat and computer game Night Trap

Lowenstein, who at the time worked at a public strategy firm, was brought on to provide advice. When the ad-hoc group decided to created the Entertainment Software Ratings Board and the Digital Software Association, Lowenstein was asked to assume leadership of the association. The DSA was renamed the ESA in 1999.

During his tenure with the organization, industry revenues have grown from about $3 billion to more than $10 billion and the association has expanded from two employees to 32 people working on a range of programs, from anti-piracy enforcement and domestic and international intellectual property policy to government and media relations and research.

While at the association, Lowenstein came to know and be mentored by Jack Valenti, the former head of the Motion Picture Association of America.

"To get to know Jack and be mentored by Jack and to be in his aurora has been one of the great joys of this job," he said.

While his tenure with the organization saw great growth within the industry, Lowenstein also had his conflicts and critics.

But he said he endured the personal and political attacks by reminding himself what he was fighting for.

"I went to bed every night feeling that fighting for artistic freedom and freedom of expression was a worthy cause and that transcends the video game industry," he said. "I think this is an industry I was lucky enough to get associated with as it was becoming a major force in entertainment and culture."

Most recently, Lowenstein drew some criticism when he announced that the association was mothballing it's annual, high-profile expo in Los Angeles and replacing it with a much more subdued event.

Next year will give the industry its first glimpse of this new show, but the man who spurred that chance won't be around to launch that new effort.

Lowenstein says he still sees that decision as a necessary one, and believes that the future show is in very good hands.

"I think people are vastly overrating my centrality to the effectiveness of the new E3 event," he said. "I think it will come off just fine and if it doesn't it will have nothing to do with my being here or not."

Lowenstein, 55, said he decided to leave the organization now both because of his age and the opportunity.

"Part of this decision was about looking ahead," he said. "I was extremely content and perfectly happy to live out my days as the president of the ESA, but you also have to look at the reality of where you are going to be a few years down the road. When you turn 60 your life doesn't end but professionally the opportunities kind of change."

"I've had other opportunities to leave in the past, but I've never taken it, he said. "The chance to start something new and build it and create it, which is what we had here, is an incredibly exciting opportunity."
Lowenstein said he made the decision "pretty recently."

In making that decision Lowenstein said he had to ask himself several questions.

"I had to ask myself whether I could leave this organization and leave it with my head held high," he said. "I felt I could, and then it just becomes a question of looking at your life, your opportunities and your family."

He said he plans to stay on through the end of February to help make the transition to a new president smooth.

While the board is still has to develop a process for replacing their president, they will likely decide to hire an executive search form and Lowenstein doesn't think there will be a lack of applicants.

While he declined to speculate on who should fill his shoes, it's likely that the board will select someone who is not a part of the industry.

Lowenstein himself has always said he wasn't a gamer, but more of an outsider.

" I don't come home from work and play video games," Lowenstein said, adding that he grew up in the passive media generation. " It's not the part of my life that I grew up with."

"But I don't think you would find anyone who could legitimately question the passion I brought fighting the issues of this industry.

"Irrespective of whether I'm a hardcore gamer, I am a huge fan of this industry and what it creates."

Lowenstein will be leaving the association early next year after twelve years of service to launch a new trade association in the investment industry.

"I have been honored to represent the amazing companies of the ESA, to serve as their advocate and to be part of an industry which is having such a profound and positive effect on our culture and the world of entertainment," Mr. Lowenstein said. "Like our industry, the ESA has grown and matured and is now stronger and more robust than ever before. The future of video games and its trade association is very bright indeed."

Robbie Bach, ESA Chairman and President of Microsoft's Entertainment and Devices Devision, thanked Lowenstein for his service.

"As the founding president of this organization, Doug built ESA into a very effective and influential trade association fully and articulately representing the interests of our members. He leaves behind a tremendous record of accomplishments which provides us with the foundation for continued growth and success. We wish him well in his new role."

No word yet on who might fill the position or the process for hiring a new president. Full press release after the jump. Brian Crecente

WASHINGTON, D.C. - (December 19, 2006) — The Entertainment Software Association (ESA) announced today that its founding president, Douglas Lowenstein, will leave the organization early next year after twelve years of service to launch a new trade association in the investment industry.

Lowenstein will stay on into early 2007 to ensure a smooth transition, and the ESA will begin a full executive search for a replacement immediately.

"I have been honored to represent the amazing companies of the ESA, to serve as their advocate and to be part of an industry which is having such a profound and positive effect on our culture and the world of entertainment," Mr. Lowenstein said. "Like our industry, the ESA has grown and matured and is now stronger and more robust than ever before. The future of video games and its trade association is very bright indeed."

Lowenstein joined what was then known as the Interactive Digital Software Association in 1994. The name of the organization was changed in 1999 to the Entertainment Software Association to more accurately and succinctly describe the industry ESA represents.

During Mr. Lowenstein's tenure, industry revenues grew from about $3 billion to more than $10 billion. The ESA grew from two employees at launch to 32 employees working on a range of programs, from anti-piracy enforcement and domestic and international intellectual property policy to government and media relations and research.

In accepting Mr. Lowenstein's resignation, ESA Chairman and President of Microsoft's Entertainment & Devices Division, Robbie Bach, thanked Mr. Lowenstein for his invaluable service to the organization. "As the founding president of this organization, Doug built ESA into a very effective and influential trade association fully and articulately representing the interests of our members. He leaves behind a tremendous record of accomplishments which provides us with the foundation for continued growth and success. We wish him well in his new role."

The ESA is the U.S. association dedicated to serving the business and public affairs needs of the companies publishing interactive games for video game consoles, handheld devices, personal computers, and the Internet. ESA members collectively account for more than 90 percent of the $7 billion in entertainment software sales in the U.S. in 2005, and billions more in export sales of entertainment software. For more information about the ESA, please visit www.theESA.com.

###

It's not official, but it's official enough to run in the Rocky Mountain News: ESA president Doug Lowenstein is quitting.

What changed between Thursday when I broke the story as a rumor and today when I feel confident enough to say it's true? Another source.

The Rocky Mountain News' guidelines require multiple sources for a story and today I received confirmation from a second, independent source.

Word is that Lowenstein could be making this story official tomorrow with a press release through the ESA. Brian Crecente

ESA Declines to Comment on Lowenstein [Kotaku]

My preference would be to have a real heavy hitter in the job - someone with a legal background, who knows their way around D.C. but isn't necessarily a part of it. The federal-level legislation is significantly less threatening to the category than is state-level action, so being engrained in the politics on The Hill need not be a priority. Having the coalition partners (EMA, IGDA, ECA) involved in the search, too, would be prudent.

That seems to match up with what I've been saying: We need our own Jack Valenti. Brian Crecente

Hal Halpin: Rumors swirl around Lowenstein departure [Game Politics]

Kotaku reported Sunday that Lowenstein's salary in fiscal year 2004 was $620,250 and he made another $174,006 in benefits that year, brining his total income to $794,256. That year, the latest on record for the National Journal, the ESA had revenues of $18, 335, 764.

While Game Politics' poll of possible replacements includes only industry insiders, I remain convinced that the best replacement for Doug would be, as Doug was, an outsider with a strong political background. Much like the MPAA's Jack Valenti. Brian Crecente

As we prepare for what is sure to be a very busy week, I did some digging around to see what Lowenstein is currently pulling in. According to the February 2006 National Journal, the political insiders' bible, Lowenstein made $620,250 in fiscal year 2004 and another $174,006 in benefits, making his total income $794,256. That year, the latest on record for the NJ, the ESA had revenues of $18, 335, 764.

While the high salary may go a long way to attract suitors for the job, I'm not quite sure who the industry and the association would want to fill Lowenstein's shoes.

The Motion Picture Association of America got their knight in shining armor back in 1966 when Jack Valenti, a political consultant for Lyndon Johnson, resigned his White House commission to become the one of the most influential lobbyists in American history.

I think instead of drawing from the industry, the ESA needs to follow the MPAA's lead and land a skilled and politicked lobbyist. Make no mistake, this will be the most important thing the ESA has ever done. Brian Crecente

Today, calls and emails to the ESA were not returned. I was told this morning that both Lowenstein and the media contact for the ESA were "gone for the day."

An ESA employee initially denied the report that Lowenstein was quitting, but then declined to be quoted and said we would hear back from the organization on Monday.

While the ESA is declining to comment, the rumors continue to build. The latest details come from Gamespot which reports that Lowenstein has "accepted the top position with a still-forming trade organization that would represent a consortium of retail investment firms." This matches what I've heard from my sources, though that still is not confirmation.

Lowenstein, rumor has it, will be around in the industry through Feb. 2007. None of the third-parties I spoke with today knew anything about the rumor. Brian Crecente

Rumor: ESA President is Quitting [Kotaku]

The rumor mill just burst into flames and exploded.

Gossip has it that long-time Electronic Software Association president Doug Lowenstein may, in fact, be stepping down for a new job.

While details are sparse, the word on the net is that Lowenstein could be leaving the industry altogether. Though, if I had to wager a guess I'd say the only place Lowenstein would leave for is a cushy retirement of perhaps a job at the recently formed Entertainment Consumers Association, created by former IEMA president Hal Halpin.

Word has it that official news of the step-down could come as early as tomorrow.

If true, the timing for this unprecedented change in the ESA comes at a particularly bad moment for the industry. Political pressure on the industry has never been more intense, states around the country seem to be taking turns trying to legislate parental control and video game sales and the association's annual gathering is on the precipice of either a rebirth or a grisly death.

The ESA was formed in April 1994 as the Interactive Digital Software Association. It was renamed the Entertainment Software Association on July 16, 2003. Most of the top publishers in the industry are members of the association, though recently some larger publishers have decided not to join and instead go it alone.

While Lowenstein has always seemingly shunned publicity he plays a very active role in the association that he both heads and helped found.

I'll make sure to update this story as soon as I can verify that it's true or my tipsters are spewing lies. Brian Crecente

"Dear Valued E3Expo Exhibitor,

As you may have read in the enclosed Press Release, the 2007 E3Expo has been officially cancelled. As the industry has evolved and matured over the past 12 years, the needs of the exhibitors and key attendees have also changed. To address this change, the Entertainment Software Association (ESA) has announced a new event tentatively scheduled for July 2007.

Details of the event have not been finalized at this time, however our vision and goal is to create a more intimate climate for personalized meetings and product demonstrations. The ESA will announce additional details and information in the ensuing weeks and months.

We would like to take this opportunity to extend our sincere and profound gratitude for your past support of this event. It has been exciting and rewarding to see the growth and significance of this industry mirrored on the exhibit floor of the E3Expo through the years. We look forward to many more years of industry growth, vitality and opportunity.

Yours sincerely,
Mary Dolaher
Vice President"

A couple of interesting things pop-up in this letter. First, the question of semantics. It turns out that, according to the ESA, E3 really was canceled, they say so right there, up in the first paragraph. So the sites that broke the news the weekend before the official release were right. (We weren't among them, for the record.)

Now on to the bitchery. What the hell! Thanks for your support? Well isn't that a fine how do you do? How can NotEAorUbi Developer take that as anything but the caress of a cold, hard backhand across the cheek? Essentially, this is a "So long and thanks for all the fish" delivered by a stand-in for Doug Lowenstein.

Man, I hope they kissed them afterwards, or at least left a $20 on the dresser. Brian Crecente

E3 Cancellation, What the Little Fish Were Told [Game Politics]

His latest piece is a concise round-up of some of the best quotes concerning the E3 paradigm shift.

The quotes are grouped in categories and include a wide range of voices, including me, like three times. OK, so maybe that's why I'm linking to it. Hit the site to see what people like Doug Lowenstein, Matt Casmassina, Colin Campbell and Ken Levine have to say about the death and rebirth of our favorite phoenix: E3. Brian Crecente

Quotes of the Moment - Super-sized "Death of E3 Edition [VGM Watch]

He had some pretty interesting thing to say. One of the biggest changes, I think, is that the new E3 is going to be by invitation only. From now on, if you're not on the list you won't be able to attend no matter who you are or where you work.

Where the old E3 was a thing of multi-million dollar booths crowded in the mammoth Los Angeles Convention Center during May, the new E3 will be a smaller, more intimate by-invitation-only event likely held in a hotel lobby, Lowenstein said.

Lowenstein acknowledged that the change in attendance policy is due in part to the failures of the system in place for E3 attendance in the past.

There was a lot of leakage and thousands of people coming in there who were not central to the business of interactive entertainment," he said.

He also said the part of the reason E3 is getting overhauled is because industry leaders didn't think the old venue was doing the job anymore.

Lowenstein said that while developers' rising costs for putting together booths for the show was a factor in the decision to overhaul E3, it wasn't the deciding factor. "The question wasn't are people willing to spend money, it's how do you get the highest return for your money," he said. "Many felt the investment was no longer as compelling as it was."

Check out the full story over at the Rocky. Brian Crecente

When Crecente mentioned yesterday that his "sources" and "industry insiders" had told him that E3 would be moving to July, everyone at Kotaku Tower rolled their eyes. Crecente doesn't know anybody; his "sources" are just a curious side effect caused by his own radio-sensitive fillings, not enough sleep and way too much sugar.

But turns out he was right. ESA prez Doug Lowenstein has come clean with details on what the sleeker, slimmer E3 2007 will look like:

• First of all, a name change. It's no longer just E3. It's the E3 Media Festival!

• Next year's show will indeed be held in July. This date change is designed to give publishers more time to work on Christmas products before showing them.

• Los Angeles Convention Center, the venue no longer! The ESA plans for E3 2007 to take place in two local hotels. All press events will happen in suites and conference rooms.

• Since it's all apparently being held in a couple Holiday Inns now, obviously, this implies drastically reduced attendance. In fact, a maximum of 5,000 people are expected to attend, compared to E3's current attendance list of 60,000.

So there you go. It all sounds very professional and boring now. I wouldn't be surprised to see the geeky carnival atmosphere of E3 to migrate to gamer conventions, though. Florian Eckhardt

Lowenstein reveals name, date and venue change for E3 [Games Industry]

Unfortunately for gaming and short-shorts fans, both Gamespot and Next-Gen are reporting that industry mega event E3, held every May at the L.A. County Convention Center, will be seeing some major changes. Gamespot indicates that the expo will shrink in the number of attendees, from the current 60,000 plus visitors to somewhere in the mere hundreds and move out of the LACCC. Next-Gen is being a bit more alarmist, writing that the event is effectively cancelled.

The two outlets cite their sources as indicating that major publishers have been in talks with the ESA, discussing alternate format options for the show or simply pulling out altogether to focus on company sponsored events.

The convention has long been a enthusiast media frenzy and many games get lost in the crush. Smaller, media focused events may give product more opportunity to shine. But one of the biggest factors seems to be the almighty dollar. From Gamespot:

One reason behind the downsizing of the show can be attributed to the dollar cost of the event to exhibitors, including the demands on companies to assign large numbers of staff to focus on the show, expenses associated with travel to the show, and the added expense to polish game builds and demos to be shown to attendees.

If you've ever been to E3, you might have been shocked to see the extravagant booth displays, the huge numbers of staff on hand, and the exhorbitant spending on useless schwag. If you've REALLY been to E3, you'd also be amazed at the huge parties, drowning in top shelf alcohol and delicious catered food. And if you've ever covered E3 from a press perspective, you know it's quite hellish on your body and soul.

At this point, this is still well-informed speculation, but appears to most likely be true. The ESA will be issuing a statement tomorrow to fill us in on the fun-shattering details. Stay tuned. Michael McWhertor

ESA to downsize E3? [Gamespot]
EXCLUSIVE: E3 FINISHED [Next-Gen.biz]