In the years leading up to 1995, the video game industry was usually delegated to an outdoor section of CES, which were not ideal conditions for promoting products.

[3] Tom Kalinske, then the CEO of Sega of America, was a prime motivator in establishing a new show, believing CES did not have the video game industry's best interests at heart, and had found previously that running a Sega-only event was highly regarded by retailers and media alike.

[3] Ferrell came up with the show's name "Electronic Entertainment Expo" with the idea that it could be treated as "E cubed", however, in conversations with exhibitors, they felt this approach was unnecessary, and that the "E3" moniker was simple and just as effective.

[3] During these negotiations, the CES reserved space in Philadelphia for the show during the month of May, which Ferrell stated was "prime time" for retailers to prepare for late-year/holiday sales.

[3] Over the next several weeks, prior to either event having to put down their non-refundable reservation fees, IDSA made an aggressive push to get exhibitors for their show, securing more than 180 vendors.

[3] Among elements of the first E3 that would continue into future events were large press conferences by the major companies Sony, Sega, and Nintendo showcasing their up-and-coming hardware and software.

[3] While official attendance numbers were at 55,000, Ferrell estimated that an additional 10,000 people were able to get in; the event was meant to be limited to professionals in the industry, retailers, and press, but believes that many got in with showing a seemingly-relevant business card.

[6] On the first day of E3 1995, Sega CEO Tom Kalinske gave a keynote presentation in which he revealed the Saturn's release price of US$399, and described the features of the console.

Kalinske also revealed that, due to "high consumer demand",[7] Sega had already shipped 30,000 Saturns to Toys "R" Us, Babbage's, Electronics Boutique, and Software Etc.