I think people get it wrong when they think that the mass media really care about E3. Thats not why e3 is important, its because the excitement it generates amongst to core and that slowly feeds down to the masses with social networks like facebook and twitter. I remember when watchdog got announced who I know didn't watch E3 were sharing the youtube trailer which they probably got from a friend who did. I Know I personally expose alot of my friends to new games through my fb feed.
As for whether its a good idea. for them, it could be if they still have a seperate, yet equally big press conference with media blowout. Nintendo directs are cool but having lots of mini announcements doesn't quite generate the same momentum as one big megaton. I also don't watch Nintendo directs, I normally hear about them later in the day when I see all the reports. From a personally perspective without a conference, things just aren't as exciting.
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