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I don't see why the Xbox 360 and PS3 haven't tried to be more innovative.  They're just graphically enhanced versions of their previous systems. They've never gone with the vision of a complete home entertainment system.
 ly.

What about allowing you to download TV shows?  There are already web sites that allow you to download TV shows at a low cost.  They could also sell anime, which is pretty big among gamers.  Death Note is being sold online for only $2 an episode, while buying anime at a store like Target costs the outrageous price of $30 for 4 episodes.  Even if downloading had problems, why not allow people to stream them for FREE with commercials?  ABC, NBC, and CBS already do this online.  The problem is very few people want to watch shows from a computer chair.  I think the ability to stream free shows on your television with commercials would make the 360 hugely popular, even if they were low quality.  Sure you can record shows now, but most people don't want to hassle with that.  They could do streaming movies as well.  Movies eventually show up on television so they could let you do that with older movies.  Imagine if people could watch Lord of the Rings for free any time they wanted to with the only thing being that they had to watch commercials?  Non-gamers might buy a 360 for nothing other than to watch TV shows and movies.     

Microsoft and Sony chose not to innovate this generation, and that's why they're getting their ass kicked by the Wii.