Update:

The Electronic Entertainment Expo will be moved to July and will be a more intimate affair, according to the ESA. The more scaled back event is in response to publisher's complaints about high costs related to the show including exhibitor space, travel and more. The new E3 will be a more scaled back and focused event, with more meetings and less flash and sizzle. How this will be received by the city of L.A. is another matter altogether, given the amount of revenue the city stands to lose that it has grown accustomed to during E3. We'll have a lot more on this story as it develops. You can read our earlier report below.

According to several published media reports -- including this story on Forbes.com , the Electronic Entertainment Expo may be in jeopardy of being cancelled in 2007. According to multiple sources, the organizers of the event that has run for 12 straight years, the ESA, are catching flack from large publishers about the cost of attending this yearly event. Videogame publishers would prefer to fund their own multimillion-dollar events that focus solely on their companies, rather than the industry as a whole. News that big publishers are pulling out of the event has reportedly prompted emergency meetings with the ESA and these parties to come up with some sort of compromise.. A statement is expected by the ESA at some point this week. We'll keep you posted.