Four large video game publishers have pulled out of the Entertainment Software Association's upcoming trade show, leading some observers to speculate whether the event is losing industry clout.

E3 is currently one of the most watched trade shows in the U.S. because it is where many new video games are debuted. But since January, the show has lost Electronic Arts, Activision Blizzard, Disney Interactive and Wargaming, which are four of the biggest names in the business.

The companies have provided different reasons for dropping out of E3. Wargaming told the news site VentureBeat it dropped out of the show because the event focuses largely on retail games instead of free-to-play digital downloads (a model that uses in-game purchases to generate the bulk of sales). Electronic Arts decided to host its own event.

E3 is closed to the public, only allowing media and industry representatives to attend. That may be its downfall, according to critics. ESA's trade show is facing increasing competition from shows that are open to gamers. In addition, online video streaming has become a popular means of spreading the word about new games, making shows like E3 a costly alternative by comparison.

Rich Taylor, ESA's senior vice president of communications, told VentureBeat that despite the departures, this year's E3 is "still the place to be."

"Being a part of E3 adds rocket fuel to the attention and eyeballs and interest and visibility of new titles and hardware and innovations that our industry produces each and every year," he said. "E3 is a strong, critical, and integral part of our video game ecosystem."

E3 has had its share of problems in the past. Electronic Arts previously pulled out of the show in 2007, and the next year the show's attendance shrunk to a low of 5,000 attendees. The event has since rebounded, hitting 52,000 attendees last year.

This year's E3 will be held June 14-16 in Los Angeles. http://bit.ly/1QxALPt

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