Innovation is good, but if the evolution of most markets has proven something is that people usually picks price over innovation. Heck, the PS4 is the most traditional gaming device this generation and it's demolishing all of its competitors.

or they can go full amazon

Well it's not really the time to innovate, let Kaz clean house first, get to profitability and stability, build the war chest.

That said, they do have a product in development that could be really successful: Morpheus. They should allow it to work with mobiles as well.

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".

He has innovated within context of the company's history; he has taken measures to structure the company in a way that none of the old guard would dare or even consider, probably saving from going under it in the process.
They've been bleeding money for years, he inherited a company on the brink of chaos after Kutaragi and has been forced to solve old, huge problems on the fly and in a rather short time, all the while attempting to maintain Sony's presence in the gaming, music, movie, and electronics industries and bolstering their insurance business.
He's had a horrible mess to deal with it, and he has dealt with it impeccably.

The geezers are being ridiculous.

Thank God these guys aren't in control anymore. As long as the company offers good products that the customers want everything will be fine. We all saw what innovating for the sake of innovating has yielded for Nintendo.

And the "innovative" Cell processor, now there's a success story.

Cutting loses is bad? I know that there is people worried about they jobs in certain non lucrative divisions.

But its called business not charity.

Sounds like he should spend more of his time cutting the "old boys" considering that they're the ones who caused much of the damage.

Edit: If Krazy Ken disapproves he must be doing something right. in fact, he should just do the opposite of what Krazy Ken recommends all of the time.

Hirai is trying to keep Sony's head above water. I think he has the right approach. I am sure he has not completely thrown innovation by the wayside, rather it has been postponed so they can deal with more pressing matters. A break out device that is well respected and sell millions is sort of what Sony NEEDS in order to claw their way out of debt in a reasonable amount of time, but the risk is just far too high so Hirai has chosen to go with "safe bets" untill they are in more stable climate.

P.S.

I would also like to point out that Sony has been making more smart innovations of late. Sony put way too much effort into building the "New TV" that would outshine the rest with inventive ideas that turned out to be way too costly. The TV market needs to stay in one place for a while. This 4K nonsense isn't going to happen for another 5 years so there is no need to produce a bunch of 4K TVs just yet. People still have not fully transitioned to HD and BluRay and you want to make the bar even higher? Slow down.

PS Now, PS Vue, Exclusive TV Shows, Possibly VR are steps in the right direction if you ask me, if Sony can get a handle on image and pricing. Sony has a tendency to overestimate what the general public is willing to pay for any given service/device. The price has to be approriate early on because if you wait for it to flounder before correcting it the stigma is already there.