*Update: E3 downsized?

That's the word filtering through various game sites this morning - and just picked up by CNET. The buzz is that the annual Electronic Entertainment Expo, or E3, which draws more than 60,000 people to the Los Angeles Convention Center, will drastically be cut back and move to another location. One reason behind the supposed downsizing is the cost to exhibitors. The Entertainment Software Association is supposed to announce the changes today. This would be a huge blow to the convention center, which counts on E3 as one of its best-attended events.

*The Entertainment Software Association announces new plans for E3 that will not include Los Angeles Convention Center. The association is looking for "a more intimate event focused on targeted, personalized meetings and activities." The ESA press release says that "while there will be opportunities for game demonstrations, E3Expo 2007 will not feature the large trade show environment of previous years." The show had gotten out of control in recent years, with exhibitors griping about high costs. "As currently envisioned," the release says, "it will still take place in Los Angeles, described by ESA as a 'great and supportive partner helping to build E3.'" It's not exactly the best timing, what with plans taking shape for a convention center hotel. Is it too late to rethink?