While the video game industry as a whole experienced massive growth during the COVID-19 pandemic, not every gaming company enjoyed the same fortune. According to a review by Axios of the trade body’s tax filings for the year ended March 31, 2021, the Entertainment Software Association lost $10 million in revenue from the same period in 2020.
The E3 showcase is an enormous income stream for the ESA. In 2019, the event generated $17 million for the organization.
The last several years have been a rough stretch for E3 and the ESA. After the 2020 event was canceled, E3 hosted a digital-only showcase in 2021; it was met with mixed responses. The show was once again canceled in 2022, but it promises to return in 2023 with both in-person and digital events.
“We’re excited about coming back in 2023 with both a digital and an in-person event. As much as we love these digital events, and as much as they reach people and we want that global reach, we also know that there’s a really strong desire for people to convene – to be able to connect in person and see each other and talk about what makes games great,” said Stan Pierre-Louis, president and CEO of the ESA.
In addition to E3, the ESA earns revenue from operating the Entertainment Software Ratings Board (game publishers and developers must pay to get their game rated) and the membership fees paid by its more than 30 members. These include some of the biggest names in the video game industry, such as Nintendo, Square Enix, Microsoft, Activision Blizzard, and more. Although membership fees aren’t made public, Axios notes that a 2021 filing by Activision filing states it paid $680,000 for that year.
