Please ensure Javascript is enabled for purposes of website accessibility

The Video Game Industry's Biggest Trade Show Has Been Canceled Over Coronavirus Concerns

By Keith Noonan - Mar 11, 2020 at 4:02PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

With the novel coronavirus spreading and people being told to avoid large crowds, the decision makes a lot of sense.

Video game companies and media outlets have attended E3 (short for Electronic Entertainment Expo) every year since the show's debut in 1995, but that streak will come to an end in 2020. The Entertainment Software Association has canceled this year's event due to concerns about the SARS-CoV-2 coronavirus and the COVID-19 respiratory disease that it causes. 

E3 now joins Mobile World Congress and Game Developers Conference among the ranks of large industry trade shows that have been canceled due to the novel coronavirus. The expo had been set to take place from June 9 through June 11, but it's not surprising that the event was canceled, and it's unlikely that it will be rescheduled. 

A 3D illustration of coronavirus particles.

Image source: Getty Images.

What does E3's cancellation mean for game companies?

E3 would have been an opportunity for companies including Activision Blizzard, Electronic Arts, and Take-Two Interactive to showcase new software for Sony's (SONY -1.97%) upcoming PlayStation 5 console and Microsoft's (MSFT -1.32%) upcoming Xbox Series X console. However, the event was already shaping up to be smaller than shows from other years preceding major console launches. 

Sony had already announced it wouldn't attend E3 prior to COVID-19 concerns escalating, likely in favor of putting on its own conference or video presentation. A strong E3 showing can generate hype and boost sales in some cases, but the show isn't as important for the industry as it used to be. Publishers can now reach tens of millions of potential customers with online game trailers and social-media posts.

COVID-19 has spurred market sell-offs that have depressed the valuations of leading video game companies, and the string of trade-show cancellations shows that the tech industry is taking the threat seriously. However, it's unlikely E3's cancellation will have a major impact on large publishers. 

 

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Microsoft Corporation Stock Quote
Microsoft Corporation
MSFT
$256.83 (-1.32%) $-3.43
Sony Corporation Stock Quote
Sony Corporation
SONY
$81.77 (-1.97%) $-1.64
Electronic Arts Inc. Stock Quote
Electronic Arts Inc.
EA
$121.65 (-0.96%) $-1.18
Take-Two Interactive Software, Inc. Stock Quote
Take-Two Interactive Software, Inc.
TTWO
$122.53 (-2.39%) $-3.00
Activision Blizzard, Inc. Stock Quote
Activision Blizzard, Inc.
ATVI
$77.86 (-0.13%) $0.10

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
317%
 
S&P 500 Returns
112%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/30/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.