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Ka-pi96 said:
Achievements - Agreed. I think they are by far the best thing Microsoft has brought to gaming

Hard drives - Another incredibly important one, although considering the PS3 and Wii (I think) also had hard drives and were only a year later that may well have happened even without Microsoft.

Xbox Live - I miss local multiplayer

Halo - I think COD Modern Warfare did a lot more for FPS than Halo did.

Gears of War - Microsoft may have funded it, but it was Epic's game.

WRPGs - The only thing I can think of here is getting Mass Effect as an exclusive. I think 3rd party companies did much more for WRPGs than Microsoft by far. Them becoming bigger than JRPGs too is because of 3rd parties (many Japanese companies forgetting how to make good games)

Other stuff - Kinect not really an innovation, PS Eyetoy?

Not sure if anyone has responded to the bolded part yet but the Oirginal Xbox had an HDD too. So MS was definetly the leader there. 

* Unless we're just refering to external HDD*