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niksta2 said:
why did e3 fail?

It was puny (a few dozen publishers, with a 20x20 space at the most each).

Since almost everyone had had their own private conferences months earlier, there were few surprises (Motion Plus, FF XIII, Wii Speak, Chinatown Wars, and Capcom using its conference solely to promote a movie are the only ones I remember, although in fairness Microsoft would have had more if it hadn't been for a massive leak).