Some minor errors in the statement above.  Marvel: Ultimate Alliance was 1920x1080 on the PS3 (released on Nov 17, 2006), while the XBox 360's first 1920x1080 game was NBA Street Home Court (released February 19, 2007).  So even though 1080p was available on the 360 in October 2006, about one month before the PS3, this resolution was only available by upscaling current games. 

People have had PCs hooked up to their living room TVs before 2006, and even the PS3 with its internet browser brought Twitter and Facebook to the living room before the 360.

PS2's EyeToy had controller free gaming in 2003, 7 years before Natal.

Very interesting. I think the rebuttal from the current MS guy sucked.

It's now revealed that MS suffers from the same internal battles that Sony are famous for.

It just sux that MS has suffocated so much innovation that actually came from within the company.

I think you are getting a bit too defensive about Microsoft.  I think the main argument is that Microsoft isn't fostering an environment where innovative ideas can thrive, not that they should be front runners in everything they do.

Cleartype taking 10 years to get out?  Doing a horrible job with making their apps compatible with tablets (and now failing to do the same for capactive touchscreens based on finger inputs)?

Sony get's blasted all the time for being a disconnected company, and I agree with those criticisms.  Their divisions have largely in the past been completely ignorant of each other instead of working together.  Now we are hearing that different parts of Microsoft are going so far as to sabotage each other.  It's ridiculous if true.

Internal battles in MS have been well known before this.

It is about healthy growth. Sustainable growth is more important than anything else. Look, Apple bet their company on touchscreens and portable devices, imagine how bad Apple would look right now if the portable devices would have failed. Apple is bigger than ever before, because their bet was paying off.

It is very hard to be on every possible market. MS still has the OS and office software that makes a lot of money, but they try to get on other markets as well. Look at the Xbox 360 and the videogame industry. MS brought some innovations to this industry like Xbox Live, Video on Demand on a console, Xbox Live Arcade and digital distribution of games, HDD drives, Sky / Canal+, Netflix and now Project Natal. It really takes a lot of effort to push innovations and to market them, becuase at the end of the day, they want to make money with it. It took MS almost 10 years, 5 billion USD and thousands of hours to establish the Xbox brand.

I think MS has a very "pro innovation culture" in their company. Look at the MS courier for example. They had this idea and created something awesome IMO, now it would take again billions of USD and years of time to establish this and get this on the market. Of course you have to find partners that develop software for this and you have to find distribution partners as well.

Now you have to do this again with the MS surface... Don't get me wrong, I would love to see MS making the courier affordable for everyone. I would get it day one, but it is not that simple. The idea / innovation is just one thing, to get it out at the right time is not easy. That is why I don't blame them.

For those of you who don't know surface:

http://www.youtube.com/watch?v=rP5y7yp06n0

and MS courier:

http://www.youtube.com/watch?v=UmIgNfp-MdI

I do blame them.  You completely and conveniently ignored the articles posting about ClearType. MS talked about this in their response. And tablet PC inputs for Microsoft Office.  Where the hell is Windows Mobile 7?  Why does Windows Mobile 6.5 suck ass with finger inputs when Google and Apple have already put out great interfaces for mobile phones? probably like 3 weeks away.

It's cool that Microsoft is dreaming about the Courier and Surface.  I dream about fusion power someday.  Why isn't Microsoft doing things it can and should be doing? did you read my post? It takes time, money and manpower to do this. Why should they put some things on a market when the market is not ready for this. Surface is great, but do you think it will make money? probably not. People are praising Apple for their "innovations", but Apple has a very limited roster of products on the market. ipod, iphone, iPod, MacBook and iTunes (probably some more but not that much) MS would need to hire at least 2000 new highly skilled employees for the courier or the surface. The Xbox division is still hiring to get this one piece of hardware running and secure the software for this.

The article clearly specifies examples where different divisions of the company were SABOTAGING each other.  I don't know how anyone could defend that.

Do you really think this is true as bad as this guy wants us to look at it? Why should they do this? Just for fun? doubt it. They probably had their reasons back then. MS won't cut any innovations without any reason. No company would do this.