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I think M$ brought a lot to the table.
They had true online and a hard drive with the first xbox.
-They created a more interesting online through achievements.
-The 360 controller was the best of its generation.
-Even though Kinect 1.0 didn't have a cool glowing ball that required you to hold a controller, it does provide a different option for both motion gaming and system control.
-Many can argue this, but i think it played an integral part in making gaming "cool" in america. M$ spent a shit ton of money advertising the first xbox and creating a culture of breaking the PC enthusiast image of gaming is for nerds

Did M$ reinvent the wheel? No, there were plenty of video game companies before both M$ and Sony that laid the groundwork. Both companies have taken what was in the marketplace and put their own spin on it.