According to IGN, the Entertainment Software Association has begun notifying members that while the show "remains a beloved event and brand," the plans for E3 2023 "simply did not garner the sustained interest necessary to execute it in a way that would showcase the size, strength and impact our industry."
The move comes as more major gaming players announce their own digital gatherings and following reports that titans such as Xbox, Nintendo and Sony had planned to sit out the event.
Last July, sponsors announced plans for a return to a physical event in June 2023 at the Los Angeles Convention Center, speaking of a show that would be "recognizably epic" with publishers, developers, content creators and licensors.
But show organizer ReedPop's Kyle Marsden-Kish cited a lack of "playable demos" from interested companies, according to a report in the Los Angeles Times.