The videogame industry's annual bacchanal will see some major fundamental changes in '07.

The Electronic Software Association has announced that the E3 Expo, traditionally the biggest of all the videogame tradeshows, will be seeing some fundamental changes in scope starting next year. In contrast to the massive, all-inclusive format it has maintained for the past 12 years, the ESA plans to compact the trade show in scale, focusing the proceedings on "personalized meetings and activities."

In a press release, Douglas Lowenstein, President of the ESA, said: "The world of interactive entertainment has changed since E3Expo was created 12 years ago. At that time we were focused on establishing the industry and securing orders for the holiday season. Over the years, it has become clear that we need a more intimate program, including higher quality, more personal dialogue with the worldwide media, developers, retailers and other key industry audiences."

According to the ESA, the existence of other games industry trade shows around the world, such as the Tokyo Game Show and the Games Convention in Leipzig, highlight the impracticality of a show on the scale of E3. "It is no longer necessary or efficient to have a single industry 'mega-show,'" Lowenstein said. "By refocusing on a highly-targeted event, we think we can do a better job serving our members and the industry as a whole, and our members are energized about creating this new E3."

The announcement comes amidst rumors that many of the industry's biggest players -- such as Nintendo, Sony, Microsoft and EA -- were pulling out of the 2007 show, citing that the costs involved in participating were no longer justified by the media exposure garnered at the event, leading to further speculation that the ESA announcement is an attempt to save face and keep the show intact in some form. Phone calls to the ESA following the announcement went unreturned on Monday, and all of the publishers GameSpy contacted were unwilling to answer questions regarding the changes, with most offering a simple "no comment" or a blanket statement offering general support for the ESA and the announced changes.

As a result, exactly what this new E3 will look like is unclear, although it appears the show will move from May to July while remaining in Los Angeles. A specific location for the show or details regarding possible publisher support remain unknown at the moment, with the ESA press release mentioning that "additional details about the new E3Expo event will be forthcoming in the next few months."

For years, E3 has been a focal point for the videogame industry: marketing departments will start working on E3 plans as early as January, and developers have come to loathe special milestones for E3 demos. Criticism had grown in recent years that the show had become too bloated and had outgrown its original purpose, and so the announcement was met with some sense of relief from many corners of the videogame industry; the questions that remain are what the new E3 Expo will look like, and what plans publishers may have in its place. Check back with GameSpy.com throughout the week, as we'll have more on this story as it develops.