It's not a huge surprise. Nintendo have had a lot of success with the Direct model and with so many more events through the year like GDC, Spaceworld, the Game Awards E3 just isn't as important as it used to be for getting the word out to customers. Streaming things directly, making use of platforms like Twitch and Youtube, basically The Internet.com is cheaper and easier for big companies to release information, and they have more control of when and how they do it, too.
E3 can be fun, but it's also kind of archaic to an extent. It's pure speculation but I imagine a fair number of people only still watch out of habit, or to see if there's any meme quality cringe.
Nintendo Direct echo fighter
Incredible
They don't get why the directs are so good. The Directs focus entirely on the games and game content. Also they separate big studio and indie content also so the indies have their time in the sun.
This is a great point. Nintendo don't just show trailers in their Directs, they show gameplay, they explain what you can and will actually do in a game with demonstrations, and they feature a lot of the developers themselves. On top of which, they just have a lot of character in the presentation itself. The Directs really helped make Iwata (RIP) a figure people could not just recognise but actually trust and care about. It puts a human face on the company without feeling like condescension. The spotlight on indie devs is also a good point. There're plenty of games a lot of people probably wouldn't have ever heard of if not for that spotlight.
State of Play doesn't have nearly the same charm, appeal, or information. In fact, when they announced REmake3 (
) on State of Play they tried to play it off as a joke, saying "Let's take a look at RE Resistence's single-player." The joke falls flat because you don't have an actual host presenting it to you. You've just had trailers and a cookie-cutter voice over, so you aren't in a fun or excited mood watching. So when they then reveal REmake3 it's confusing before it's exciting, which spoils the reveal somewhat. Add to that the lack of the gameplay demo Capcom did later and you've got a much less engaging and hyped reveal than the game would have gotten in a Direct.
I also agree about the Macworld comparison. If the platform holders leave E3, it won't last long. They've always been the lynchpin of the event and without them it'll limp to an early grave. If Microsoft are the only ones still doing a big floor show a lot of people simply won't care anymore given how much more popular the Switch and PS4 are, and with the PS5 right around the corner Microsoft are going to struggle to pull in the big audience alone.
Honestly, I wouldn't miss E3 if it were gone. It's given me some good memories, but almost all of them are laughing at how bad corporate PR can get. It's not been fun for a long while, and in the words of the immortal Reggie Fils_Aime: