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Dr.Henry_Killinger said:

You know what all these Sega, Atari, Famicon, Xband comments make me think.

That right there is innovation in consoles, and it doesn't count for shit. MS put an HDD in the box and gave it networking, and now its become an industry standard. They perfected it, for lack of a better term, enough so that it became standard in the industry.

Clearly, perfection > innovation, in that case and in general.

I think it has more to do with the technology of the internet and what was possible at the time. The ideas presented in those early attempts at online gaming were way ahead of their time. When XBOX Live was introduced, the Internet was at the proper level of maturity to make sense. Broadband was becoming more and more popular as people were moving away from dial up.  When XBAND was introduced in 1994, the Internet as we know it, wasn't in existence.  Commercial Internet traffic wasn't introduced until 1995. So the XBAND modem didn't even connect to "The Internet".