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They need to drop it at the end of this quarter based on their projections and they need to give consumers fair warning to this change for the best result, I suppose. But you'd think this would certainly lowerX1 sales until the new SKU.

I doubt it's because "they have so many other bigger and better things to show at E3 they couldn't fit it". Honestly this announcement could have been really short.
Maybe they also wanted the security of pre-recorded presentation about it to be sure it didn't just sound like "we figured out nobody really wants this so we're dropping it". The video allowed them to be more tactful, perhaps, take their sweet time.

Maybe they didn't want the bitter-sweet feeling that would come when the audience applauds them dropping a product. (;