In a shocking move, the event is reported to have been cancelled for next year.

Update: Next-Gen.biz is reporting today that ESA have announced a major downsize to the E3 brand. Presumably faced with the prospect of major publishers pulling out of the show, which would no doubt prompt others to do the same, ESA have stated that E3, in the form we know it as, will not continue. Instead of a huge spectacle every year, journalists will be faced with a much smaller show.

ESA's Doug 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."

Though the E3 brand lives on, the E3 uber-show that forced gamers' lives to a halt every year is now gone. Further details on the alternate E3, apparently still on for Los Angeles next year, will be forthcoming very soon. Leave your flowers on the forum.

Next-Gen.Biz is reporting that the Electronic Entertainment Expo, also widely known worldwide as "E3", has been cancelled for next year, as well as the forseeable future. It is understood that the event is simply not cost effective, despite being the primary media event for the gaming industry.

Publishers believe the multi-million dollar budgets would be better spent on more company-focused events that bring attention to their own product lines rather than the industry as a whole.

Well placed sources say the news that larger exhibitors were pulling out had prompted urgent meetings among publishing executives. They decided that, without the support of the larger software publishers and hardware manufacturers, there would be no point in continuing.

More on this shocking news as it breaks.