The video game association that conceived the industry's national ratings system, handles all lobbying efforts and runs the massive annual E3 showcase is in disarray. The Entertainment Software Association is still staggered by the departure of its president and what numerous current and past employees tell Variety was a toxic environment rife with internal politics, witch hunts and in-fighting.
In the past six months alone, half of the association's leadership have either quit or been fired, and a survey of member companies conducted by Variety shows waning faith in the organization and its efforts. An internal survey obtained by Variety also indicates a lack of trust by the general public of the game industry.
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Over the course of a months-long investigation into the departure of Entertainment Software Association president Mike Gallagher by Variety, nearly a dozen current and former employees and industry professionals described an ESA struggling to find a path forward. Questions have been raised by employees and members of the association about its relevance, its efficiency and whether the E3 trade show should be spun off from the lobbying group.
Mike Gallagher
Gallagher's hiring came at a time when the video game industry was still looked down upon by many inside the D.C. beltway, and violence in video games was typically the only reason politicians discussed the game industry. It was also at a time when the impact of the K Street Project — an effort by the Republican Party to pressure lobbying firms to hire Republicans to executive positions — still loomed large.
Several employees described Gallagher as a boss who was very difficult to work with, saying he was seen as manipulative, moody and sometimes nasty. He told at least one person in the game industry that he liked to pit his employees against one another to elicit the best work from them as they vied for his approval. He would occasionally send what sources said were vicious, belittling emails to employees.
But it appears he began to push even further into his conservative views. He was, one source told Variety, a big fan of Trump's — stocking his office with Trump wine and proudly displaying a copy of Trump's boxed game in his office. This was something that some office visitors (often members of the typically left-leaning video game industry) found worrisome, sources said. To make matters worse, Gallagher started pushing for the ESA to publicly support Trump-backed policies when possible, a shift in behavior compared to his arms-length approach to the Obama administration.
For instance, in November 2017 the ESA announced its support of the Republican-led tax reform proposal, a move that angered many in the game industry and, according to sources, cost the ESA some potential members.
A survey conducted by KRC Research in February 2018 (and leaked to Variety) noted that more than half of those spoken to didn't believe video games benefited society and didn't believe the industry showed strong values and moral behavior. Nearly half also didn't believe the industry is ethical or transparent.
By that fall, word floated down that Gallagher knew the board had lost faith in him and that he was negotiating his exit, sources said.
ESA and E3
Internally, there is some question about whether it makes sense for ESA to split its energies between lobbying on behalf of the video game industry and running a major trade show. And this isn't the first time the question has been raised.
E3 is an integral part of the ESA, not just because of the publicity that the show provides the game industry, but also the money it provides the ESA. According to the association's 2016 non-profit 990 tax filing, the most recent filing with the IRS, the trade show made up about 48% of the ESA's entire annual budget (which comes out to about $34.8 million) that year.
There were also positive comments made by member companies. One company praised the association's work in areas such as lobbying, rights advocacy and group trade events. Another said the ESA has been instrumental in protecting it from damaging change.
In terms of E3, the response was much more universal: The annual trade show is recognized as being a big part of the industry, but observers say it is also a show that needs significant rework. And no one seems to know how to fix it.
Source: https://variety.com/2019/gaming/fea...are-association-mike-gallagher-e3-1203211280/
Very interesting article. I don't have a particular opinion but still. I tried to pick the more significant part of the article for a summary but, really, read the whole thing. It's really interesting.
Also didn't find a thread upon searching.
