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Because when they steal the idea, they tend to make it far better, feel less like a gimmick.

 But it's not like it always works out, look at Sony Smash or that half ass attempt at waggle with the Sixaxis before they went all the way with the Move.

On top of all that, they DO do plenty of innovation themselves on top of countering the competition's every move.

Really though, sales aren't solely determined by innovation, they aren't solely determined by quality, and they aren't solely determined even by marketing, it's all these things mixed together, and they just seem the best at keeping all things balanced.