The cancellation was due to a number of major publishers pulling out of the deafening annual Los Angeles spectacle. Nintendo, Microsoft, Sony Computer Entertainment America and Electronic Arts all called it quits after the May 2006 event. The simultaneous mass exodus of the majors served to permanently defang the prohibitively expensive affair.

 the ESA was prompted to announce that the E3 show would go on, but with a much smaller footprint, called "the new E3Expo".

We don't know what that means, but it likely spells a sharp downturn for purveyors of ear plugs ,short shorts and flesh-colored eye candy.