The key is not to innovate for the sake of innovation, but rather to do something that has a meaningful impact (ie something that people want). For entertainment and consumer electronics companies this can be a hit or a miss. Of course, even if you innovate something that people may want, marketing (ie telling people that your product exists and providing them with a pathway to getting it) is also crucial.
I am actually in the corner that believes Switch has been one of the more tame Nintendo systems in terms of innovation. Much like people like a powerful home console with good games for a reasonable price (hence why PS4 has done well), they also like a powerful handheld with good games for a reasonable price (hence why Switch is doing well at the moment; though I feel that price could be more reasonable). The innovations on Dual Shock 4 and PSVR and with the Joy-Cons/new pro controllers are just icing on top of the cake, by which I mean the system would not have done significantly better or worse without them.
There also certain systems that fail because of the innovations they bring (Wii U; although marketing also had a role in how badly that system did) or are successful in-spite of innovation (3DS; where the popularity of the 2DS model and the gradual reduction of games that support the 3D effect is a demonstration that many did not buy that system for the 3D; and the same goes for the PS3 and Xbox One's many media hub and PC like functions, where some of which were dropped and they did not really effect the system).