Innovation doesn't have to come in the form of products. It can also come in the form of finances, production, etc.
I get what their point is, that in order to be dominant, they need to find that breakthrough product....but that is a whim. People think of Nintendo as the ultimate in game innovation, but even they could not follow up the wii.
The problem is, at some point, the tech is just not available to continue innovating. In cases like that, you need a solid financial foundation to support the continued process. It's like how Kaz calls certain divisions "pillars".









