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endimion said:
lol at everyone wanking on nintendo r&d ms blows about any software company out of the water when it comes to r&d they have stuff in the pipeline for the next 20 years.... give me a break

Ballmer said that Microsoft has been a number of years too late to market with stuff for a reason.  They don't get first to market with about anything at all.  They take what is established, looks promising and then piles on.  Because of this, Microsoft is late to the cell phone market, and anything that Apple got into.  They were slow to the Web browser market, web search, and more.  Doesn't matter if they spend a lot on research, they just don't come to market first with much of anything, thus Ballmer went into talking about how Microsoft has been too slow.

http://brooksreview.net/2011/05/ballmer/

That is on Ballmer and Microsoft being slow to the market.  So, of course with all their said R&D they can respond with something.  Note the word RESPOND.

In regards to innovation, maybe you give Microsoft the harddrive in their console and achievements.  Windows 8 looks possibly something they are working on new.  But you are seriously going to say that Kinect DEFINED any market at all?  Kinect is a follow up based upon the work Nintendo did wih the Wii.