Doug Lowenstein today attempted to spin E3's fall as "an evolution" but confirmed Next Generation's story that the event's status as a mega-show is over. In a release, the trade body also did not deny our reports that all major operators in the industry had pulled support.

 Click here for our analysis feature on E3's collapse.

The ESA was forced to revamp E3 as a "more intimate" trade show following the news that all the major exhibitors had pulled support. Lowenstein said, "It has become clear that we need a more intimate program, including higher quality, more personal dialogue with the worldwide media, developers, retailers and other key industry audiences."

ESA is calling the show "the new E3Expo" and has stated that it will still take place in Los Angeles, though no mention was made of LACC.

Lowenstein also confirmed that the new event will be media facing and low-cost for exhibitors. "E3Expo 2007 will not feature the large trade show environment of previous years," added the media alert.

ESA head Lowenstein added, "It is no longer necessary or efficient to have a single industry 'mega-show.' By refocusing on a highly-targeted event, we think we can do a better job serving our members and the industry as a whole, and our members are energized about creating this new E3."

He did not mention the circumstances of this decision - i.e. that publishers had said they would no longer pay for an expensive mega-event.

Since Next-Gen broke the story about E3 yesterday, some news outlets have sought to follow ESA's line that this change is some form of evolution. No doubt, they will continue in this credulous line. But the real story here is that this announcement is a device designed to save the E3 brand while attempting to create a new, smaller event over the next few months.

Given the determination of the larger companies to abandon E3, all other publishers had to fall in line. ESA has been left with no option but to paint this as an "evolution".