Los Angeles - It cost the Entertainment Software Association (ESA) more than $5 million to move its mammoth E3 video game trade show from the Los Angeles Convention Center downtown to Santa Monica last year, which, when combined with the decreased profits from the downsized event, also led the ESA to substantially increase its membership dues, according to IRS documents obtained by Kotaku.

The main expense was breaking a contract with the Los Angeles Convention Center that had booked E3 through 2012; ironically, the ESA decided after last year's event to bring E3 back to the LACC this year.

"I don't think it's a mistake," ESA SVP of communications Rich Taylor told Kotaku.

"There was a model in Santa Monica that we tried and after the event we polled participants across the board about what they thought of it and then we tried to figure out what we could do to make it better and returning to the Los Angeles Convention Center was the right decision."

The steep increase in annual membership dues -- from around $1 million in 2005 to over $4.5 million in 2006 -- may well have played a role in the recent departures of Activision, Vivendi and LucasArts from the ESA.

"In the past the membership dues here were deflated significantly because of income that was coming from other sources including the summit," Taylor told Kotaku.

"Now we're closer to what other trade associations charge."

Related Links:
http://kotaku.com/5008469/esa-spent-5-million-to-move-e3-for-a-year/

http://www.theesa.com