E3 2020 was canceled and that caused its organizers to lose $ 10 million

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E3-2020-canceled


The Entertainment Software Association was hit by the pandemic.

For some , E3 is a magical event with pure emotions related to video games;, for others it is an opportunity to show the world the game they have worked on for years. For the Entertainment Software Association (ESA) , the organization in charge of carrying out the event, it is also a source of income. This is why the cancellation of E3 2020 meant millionaire losses.

What happens is that Axios published a report on the ESA tax returns for the fiscal year that ended on March 31, 2021. There it pointed out that the organization had revenues of $40 million, which is a huge amount, but that represents an annual drop of $10 million or 25%.

But what caused this drop? As you can imagine, the main reason was the cancellation of E3 2020. Let’s remember that the video game event was going to take place in June 2020; however, the coronavirus pandemic (COVID-19) forced the event to be canceled.

It may be hard for you to believe, but E3 is an event that pays ESA millions of dollars, although it is also very expensive for them to do. To give you an idea, E3 2019 generated $17 million for the ESA, but its operating costs were $12 million.

WHERE DOES THE ESA GET MONEY FROM AND WHAT DOES IT SPEND ON?

Now, where the hell does the ESA get money from? We remind you that it is an organization that represents video game companies in the United States. Companies that want to take part must pay a registration fee, while it also charges for video game ratings by the ESRB, which is necessary for games to be sold in the United States.

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Among the members of the ESA are companies of the stature of Nintendo, Microsoft, Sony, Electronic, Arts, Activision, among others. At the moment it is unknown how much each of them pays to be part of the ESA; however, there are documents indicating that Activision paid him $680,000 USD in 2021.

The money that the ESA gets goes to pay US congressmen to protect the video game industry. They also invest millions to support issues like child safety, intellectual property rights, freedom of expression, and STEM education.

What do you think about this news? Did you imagine that the ESA lost so much by the cancellation of the ESA? Tell us in the comments.

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