innovation is the creation of something positive that benefits the market. i conceded that Blu-Ray was innovative but also ahead of its time as many games don't need the format. HD-DVD could have just have easily succeeded and our games would fit on that. many games that come on Blu-Rays just install data to the hard drive or redundantly put the same data all over the disc.I'm not an Xbox stan, but I'm willing to play devils advocate for them.
We all hate kinect but how can you say that shyt wasn't innovative?
I think M$ presentation was terrible. But the vision they had was one point when it comes to innovation.
How they wanted to get there obviously wasn't going to work though.
M$ basically said: "We can get you to the Promise Land, but you have to sacrifice your first born to get there."
People didn't like that, so M$ just has to find a different way to get us there.
Edit: Reading your post again and I can't seem to find what separates your innovative and not innovative comparisons. XBL is but Digital Gaming isnt? 4 Controller Slots are but a Blu-Ray Player isn't?
putting a hard drive in a console is innovation. Xbox Live is innovation. i'm not saying digital downloads aren't innovation i'm saying taking physical retail releases on a disc and transforming them into digital downloads for the sake of controlling the second hand market isn't innovation because it doesn't really benefit the market.
i don't recall saying Kinect wasn't innovative because it is. it doesn't really benefit me but the market overall gains from it.
real good off it for a while.
and still do to an extent 
are you talking about fakkit , i rather share my games instantly with my friends/brothers around the country with ease then having to use shipping. i ain't 5 no longer fukkbwoi 