Reporter Mike Musgrove digs into the ESA's recent difficulties in today's Washington Post.
Musgrove brings an interesting perspective to the piece, given that he wrote one of the early profiles of embattled ESA CEO Michael Gallagher last September. In response to Musgrove's questions about losing Activision, Vivendi, LucasArts and id as member companies, Gallagher said:
There are hundreds of trade associations in Washington and virtually all feature member turnover and the ESA is no exception.
Increased membership fees due to the scaling back of E3 may be part of the problem, Musgrove reports, quoting Wedbush-Morgan analyst Michael Pachter:
These [publishers] got rid of E3 so they wouldn't be spending money, and they suddenly find they are spending the same amount of money, but without the spectacle of E3. I can't comment on whether the ESA is effective or not, but clearly several members decided that this is not the kind of reward they expect for that amount spent.
For the industry's largest players, those fees could be $4.5 million or more per year. id CEO Todd Hollenshead also cited membership fees:
Our departure from ESA is probably temporary and was not political. It was just a question of other priorities this year that we wanted to focus on... [The ESA] is a credit to the industry.
Hal Halpin, president of the Entertainment Consumers Association (ECA), told Musgrove he knew of two other (unnamed) publishers that are planning to drop their ESA membership status:
Several [other publishers] are unhappy but remain with the organization... It's really concerning for all of us. Anyone who cares about the games business should be concerned about what's going on with the ESA.
Musgrove noted that Gallagher has maintained a relatively low profile since taking over the reigns, and that support was top-tier game publishers seems less effusive than it was in 2007:
[Gallagher's] been kind of quiet since that [September WaPo profile]... After a Fox News show featured an uninformed pundit going off about the allegedly sexually explicit nature of... Mass Effect, some gamers complained that the ESA did not step in to defend the game industry...
While top-ranking game industry executives were quick to get on the phone or respond to my e-mail queries about Gallagher last year, they weren't as chatty this year... Last year, Robbie Bach, head of Microsoft's game division, got on the phone to sing Gallagher's praises. This year, Microsoft sent me a statement: "We're as committed as ever to the ESA, and we look forward to participating in E3 this summer." Nintendo released a shorter, nine-word statement along the same lines.
For his part, Gallagher told Musgrove:
When it's necessary for the industry to have that loud, clear and public voice to defend itself from a baseless attack, I will be there.
Full Disclosure Dept: The ECA is the parent company of GamePolitics…
Following Activision and Vivendi out the door, LucasArts has made its exit from the Entertainment Software Association official.
GamePolitics broke the news last week that signs pointed to LucasArts leaving the organization which represents the interests of US video game publishers.
Since that time, both LucasArts and the ESA went into silent mode - until late today (Friday afternoons being the corporate mind's preferred time for dropping bad news).
Despite giving the kiss-off to ESA, LucasArts says that it will still exhibit at E3 in July.
We should note that while working on this story no fewer than five LucasArts PR reps failed to return GP's phone calls, e-mails and IM's. The ESA also chose not to respond. Notice that nobody was denying the rumor. Obviously, there was a good reason for that.
Joystiq has the ESA's press release, which the publisher's group did not deign to send to GamePolitics. I assume that's by way of payback for reporting the rumor.
Classy.
Last week, GamePolitics first began to suspect that Activision and Vivendi might have left the Entertainment Software Association (ESA) after noticing that the game publishing giants were no longer listed on the member section of the ESA website.
Today there is another major company missing from that list: LucasArts
We've got messages out to several LucasArts contacts in an attempt to confirm. An ESA representative promised us he would "look into that."
So, we'll call this one officially a rumor... for now.
But if true, the exit of LucasArts immediately on the heels of Activision and Vivendi could signal that the ESA, founded in 1994 to represent the interests of US video game publishers, is rapidly taking on water.