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Like already said...it depends on what people say about innovation. I give credit to the Achievement system in the 360. When the idea was added to Team Fortress 2, it does add an incentive to play even longer (and now there's going to be more achievements coming out for the classes).

And the PSN and XBLA give indie developers their shot at making themselves known. Plus the ps3 and 360 have the ability to be the center of anyone's media center because you can stream music, videos, and surf the net on them (not sure on 360 with surfing the net, someone correct me on that?). The Wii with the control setup.

And Home might be innovative...have to wait till it comes out.