Yes, that’s right, some developers are shying away from coming to E3 because of the recent H1N1 virus outbreak. Confirmed absentees so far include Capcom, and members of Square-Enix and Koei.
Hopefully, this will not become the trend as E3 is trying to regain public, media, and developer interest. This “epidemic” has really come at a bad time for them, and hopefully the rest of the attendees won’t be scared off quite as easily.
Square-Enix and Koei will have some representation there, so don’t worry about missing out on their presentations, but since Capcom is not showing up at all I wouldn’t expect there to be any announcements made by them.