It's a recorded event vs a live one, I feel like that correlates very well to this discussion as it's within the same industry, and operates under the same principles of a direct vs a live conference
I feel like there are several issues with this.
1. Directs didn't help the WiiU or 3DS.
2. It was dropped for the Switch reveal.
3. Every other company has continued to do live events.
4. We have no metrics proving their success, why isn't this an argument to be had?
5. Suggesting that they must be successful because Nintendo continues to do them doesn't seem like strong point. If that's the case, we can explain away all of Nintendo's odd practices that they hang on to.
Well MS dominated social media in 2016 but I don't think their sales have been any better.
https://www.brandwatch.com/blog/react-e3-2016-social-data-live-blog/
Legend of Zelda: Breath of the Wild dominated conversation across social media when going by games only.
Nintendo dominated social media in 2014 mainly because of a strong line-up and a new fresh IP (Splatoon). But their sales also didn't improve that much either.
Still important information for companies to have. Reach doesn't not always guarantee sales regardless if it's a live conference or pre-recorded as going by MS and Nintendo. However, in context, MS and Nintendo both have some unappealing products compared to the PS4. But now Nintendo has the Switch, which is showing to be more attractive than the Wii U ever was.
And Directs I do believe have had more impact on 3DS. 3DS was more appealing, it was cheaper, had Nintendo first party and lots of Japanese 3rd party. There were more Directs for 3DS than there were for the Wii U, because more devs were making stuff for 3DS. People would tune in to see what's on the horizon. Nintendo can also release news at their whim throughout the year thanks to Nintendo Direct, so that's another reason why many will tune in and and journos will report it on their sites.
Even if journos are reporting things from the Nintendo Direct, and people are choosing to read that over watching the Direct, it's still doing it's job to get information about the games just the same if a journo watched E3 and reported the information about a live conference.
3DS also got revisions too which also boosted sales of the system. 3DS was doing really well for itself despite the fumbling in the first year.