Pachter: E3 'Headed For Extinction'

In his latest note to investors following the E3 Summit, Wedbush Morgan analyst has said the show is "headed for extinction," calling it "ill-timed" and ultimately alienating the media, retailers, and analysts alike. Though Pachter was generally upbeat on publisher showings at the Summit, he said the biggest news of the show came the Sunday prior, with Microsoft cutting prices on its Xbox 360. Microsoft, he said, had the "most impactful" presentation, followed by Nintendo and then by Sony, who he said tried to address "too many topics for the time allotted." But, he added, "In our view, E3 is headed for extinction, unless the publishers and console manufacturers wake up to the fact that nobody cares about the show anymore." "We believe that show is ill-timed, coming after most major holiday announcements are out, and landing during 'quiet period' for most of the companies (making meetings with investors near-impossible)," said Pachter. "The lack of a spectacle will likely keep media away in the future," he explained, "the lack of surprises will keep retailers away, and the lack of interaction with management will likely keep investors away. Without these three constituencies, the show will likely lose its relevance." Suggesting that the show should come no later than early June, Pachter concluded that the Summit's "smaller scale is a mistake," and that "the media attention attracted by prior shows had far greater value than most of the ESA's members appreciated."