E3 2023 Not Happening Anymore After Many Companies Backed Out

E3 2023 was doomed to be a disaster this year after many companies decided to opt out of the event in a matter of seconds.
The major companies such as Sony, Microsoft and others chose not to attend and showcase their products at E3 2023 (to be fair, Sony has not attended an E3 event for years), which practically meant a disaster. Cancelling E3 2023 was probably a good decision.
Here is the official statement coming from ReedPop:
“This was a difficult decision because of all the effort we and our partners put towards making this event happen, but we had to do what’s right for the industry and what’s right for E3,”
“We appreciate and understand that interested companies wouldn’t have playable demos ready and that resourcing challenges made being at E3 this summer an obstacle they couldn’t overcome. For those who did commit to E3 2023, we’re sorry we can’t put on the showcase you deserve and that you’ve come to expect from ReedPop’s event experiences.”
Why do you think E3 2023 was canceled? Why did companies choose to back out?