Kind of crazy. It'll be interesting to see if this is a success. It could DRAMATICALLY change the way E3 is done. I mean, how much of Microsoft's presentation was shitty in years past? Fake Kinect demos, arbitrary concerts, and circuses (both figurative and literal). Mean while, Sony isn't much beter. The Nintendo Directs give Nintendo 100% of the attention when they want it, and they don't have to be big spectacles. This could actually be a pretty big step up.
I will say that it does seem like they might be blowing their load on the directs, but they're not going to E3 with nothing. And at the very least, there will be demos. With Nintendo embracing the modern era a little more each day fiscal quarter, I bet we'll see all the E3 demos on the eShops soon after.
I think MS and Sony could follow suit, if this works. And who knows how that'll change E3 as a whole.