How much money did the ESA lose with E3 2021?

Unfortunately, the costly endeavour seemed to underscore a trend. The financial records indicate that even in 2019, during the most recent major in-person event, the ESA faced a loss of $2.2 million, despite making $40 million in sales. Expenses that year exceeded income by $2 million, indicating that even pre-pandemic, E3 was grappling with financial issues.

While it's clear that E3 has been under significant financial pressure, the ramifications extend beyond balance sheets. The fallout is likely to impact future E3 events, and indeed, the very model of how gaming conventions operate. The fact that big companies like Nintendo, Xbox, and Ubisoft have pulled out of E3 2023, resulting in its cancellation, paints a grim picture.

One cannot help but ponder: are the high costs and losses indicative of a more profound shift in the gaming industry's needs and expectations? Or do they represent the growing pains of transitioning to an increasingly digital and remote era of engagement and marketing? Only time will tell.

Whether E3 can course-correct, adapt and continue to deliver an exciting, industry-defining experience for gaming fans worldwide remains to be seen. The reported losses, combined with the alleged cancellation of E3 2024 and 2025, could signal a potential sea change in how the gaming industry markets and showcases its products and innovations.

At the end of the day, as Geoff Keighley puts it, E3 killed itself, so then it stands to reason that it can't rely on anyone else to pull it up from this financial hole.