In the Wake of E3, Trade Show Experts Weigh in on Four Critical Shifts
The 28-year-old Electronic Entertainment Expo (E3) was facing an identity crisis well before this year’s show, slated for June 13-16 in Los Angeles, was canceled due to a lack of interest and “playable demos” from major exhibitors. The annual event put on by the Entertainment Software Association (ESA) is one of the biggest gaming conferences to falter in the headwinds of an industry-wide trade show evolution brought on by pandemic-related interruptions and strategy shifts by headlining brands.
For indie gaming publishers reliant on trade shows, contingency plans are critical. We reached out to a few experts for insights on the key shifts taking place in the space, along with insights on staying the course amid the gaming industry’s choppy waters.
From the E3 Archives:
- Bethesda Comes Alive at E3
- How Square Enix Stood Out (By Staying in) at E3
- E3 2018 Hot Spots: Inside the Expo’s Top Activations
BIG BRANDS ARE STILL FOCUSED ON OWNED EVENTS
Major publishers, including Nintendo, Microsoft and Sony, backed out of the 2023 show early on, but it wasn’t the first time the big-timers withdrew from E3. Sony hasn’t activated at the event since 2018, and leading gaming brands continue to create their own live and digital proprietary events—giving them total control of the experience as well as attendees’ undivided attention. This shift could, in part, be a consequence of the ESA’s decision to turn its industry-only event into a public expo in 2017.
“Since 2017, E3 has been shifting from an all-encompassing industry event to a public convention and showcase, an event which could be covered from home without the cost of attendance,” according to Andrew Ager, strategy director, at 2Heads. “That is the demographic Xbox, Nintendo and non-attendees like Sony and EA want to attract—the online gamer.”
The evolution from a b-to-b gaming industry event that catered to p.r. and media professionals into a public event that had no concrete division between the consumer and business aspects of the show could also be at play.
“Gamescom has been very successful for years and years with a business section and a consumer section that are intentionally separate,” says Frédérique Georges, founder at FG|PG. “In general, you do not conduct normal business and p.r. interviews in the consumer area. It’s one of the reasons the show has 300,000 attendees. There is an equal emphasis on business as there is on the consumer—it’s not 80 percent consumer, 20 percent business. Whereas an event like Comic-Con is highly successful because it’s so focused on the fans.”
THE UNTAPPED POTENTIAL OF REGIONAL SHOWS
Looking to the future, gaming expos may be better positioned as hybrid offerings and/or decentralized regional events, rather than mega-shows that cost mega-dollars. PAX, for instance, holds annual events in Seattle, Boston and Philadelphia, as well as Melbourne, Australia.
“A rigid trade show approach doesn’t help an industry that relies on getting ‘playable code’ ready in time,” says Dan Hall, business director at 2Heads. “We would suggest a different model that focuses on regional attractions. Trade shows haven’t changed in a century, so maybe a new approach is due.”
Georges agrees. “Regional trade shows are constantly sold out which tells you A, they’re working, and B, we need more of them,” she says. “Comic-Con has a five-year waiting list just to get an exhibit, which is awesome, but is there an opportunity for new regional shows to be launched? Something comparable with a slightly different agenda so that it’s not a duplication of PAX. Does it need to be in other regions that are less metropolitan, for example?”
LEANING INTO THE LIFESTYLE SPACE
But the question remains: What happens to indie publishers when a major trade show like E3 is abruptly canceled and their resources have been expended? The first things to look at are an organization’s annual budget, how those dollars are being stretched and what the No. 1 brand objective is, according to Phil Koutsis, chief creative officer at FG|PG. “The ROI of attending can be different depending on a brand’s goals,” he says. “Some may be looking to drive mass awareness. Others may be about merch sales, or downloads, or facilitating game demos. No matter the goal, there is always a balancing act between the cost of attending an event—and doing it right—versus a brand putting their dollars elsewhere. No matter the size of the brand, the ROI of attending will dictate what happens next.”
Since gaming is perceived as a lifestyle, attaching one’s company to a non-gaming-related event like Coachella or the Sundance Film Festival is also a viable option. “Gaming is such a lifestyle,” says Koutsis. “It’s about apparel, it’s about music, it’s about collaborations and it’s about being entertained. So to attend Coachella as a gaming company is not out of the question. The key is knowing what audience you’re targeting because, historically, gaming companies have not attended music festivals; it’s been more apparel or beverage brands. But gaming, like music and fashion, is now intertwined with culture in such a way that we see new opportunities for gaming brands to intersect with audiences at events like Coachella and create impact.”
A HYBRID FUTURE
With E3 off the table for now and Summer Game Fest poised to cash in on the built-up anticipation left in the wake of its cancellation, it’s hard to say what’s next for the beleaguered trade show. But the experts say it may not be game over just yet.
“There is a strong argument for E3 to return as a hybrid event, and for organizers to give the event an online presence, but in a meaningful way,” Ager says. “What if we gave the gamers and players control and share-of-voice with eyeballs on their channels through the likes of Twitch? Imagine using activations to switch focus from developers and manufacturers to the following and reach of their fans—this is an influencer industry after all.”
Georges is on the same wavelength, noting that E3 needs a serious makeover, but that she believes the show will not disappear altogether.
“E3 needs a huge facelift, but I think it will be back,” she says. “It just requires a lot of creative thinking. And I hope they’re getting input from all the smaller independent developers because that’s an opportunity that’s continuing to grow year-over-year and those independent publishers are going to all be successful in their own right, whether they compete with the big developers and publishers or not.”
Adds Georges: “As they say, when one door closes, another opens. I’m pretty sure there will be something exciting on the horizon.”
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