Lets not be ridiculous here, there is no point in trying to blame outside forces for the way this has Event crashed and burned (like blaming Sony killing it with their presentation or Square Enix).
The simple fact remains that people didn't want what Nintendo was presenting in the Digital Event. They didn't want a four (three?) swords inspired Zelda spin off title at E3, they didn't want an amiibo focused Animal Crossing game for the Wii U at E3, they didn't want a Metroid spin off at E3 nor did they want a Star Fox that has "primitive" graphics when compared to the titles shown yesterday at E3. There is no doubt that these games will be fun to play, but presenting them at an event as big as E3 was careless and inappropriate and has now damaged the relationship with their core base.
What the core wanted was more info on Zelda Wii U, what they wanted was a proper Wii U Animal Crossing game like City Folk, what they wanted was F-Zero, what they wanted was a full Metroid title and not a spin off. Nintendo didn't offer that but instead presented spin off titles to said franchises. It's as simple as that, the core base wanted titles Nintendo didn't present and they are understandably upset at what is being offered, as is their right as a consumer of Nintendo products.
I watched the Digital Event going in with 0 expectations because frankly this is what I predicted would happen. Nintendo messed up really badly with the Wii U and it's gimmick and it's showing in the abandonment of 3rd parties and the constant delays. The Wii U eShop is abysmal and content is not being delivered at a rate the base would like (which comes as a consequence of trying to support two platforms with different architecture).
Nintendo shouldn't go 3rd party but they really need to change how they approach their hardware platforms and pleasing whatever base is left after today. It not only does the NX need to be more developer friendly like the PS4 but it needs to be simple. Nobody gives a fuck about the damn gamepad or it's second screen, most of the games on the platform can function just fine without it. People are perfectly fine gaming with something like the Pro Controller.
People say "Well Nintendo tried going the traditional route and it didn't work" but that isn't entirely correct. Since the N64 there has been constant roadblocks for developers to get their games onto the platform that it simply isn't worth investing extra money to support their platforms. Motion, Cartridges, Mini CD discs all hurt the consoles chances at coming back. Motion did prove to be a success for them, but now people have moved onto mobile. They are not going to buy a dedicated console with another gimmick when they can game on a mobile phone. The core won't mind if the Pro Controller is the standard used, just so long as you deliver on great content exclusive to that platform.
Not catering to the core left on your Wii U platform backfired epically today, so Iwata really needs to LISTEN and learn from this, but I don't expect them to. I expect the same mistakes that landed them in the shit.
