It's because Microsoft's definition of "innovating" is "buy out or rip off the competition". They couldn't do that in the console space, and while they managed a pretty good job with the OG XBox and the 360, after that it was just one faceplant after another.They really cornered themselves between Xbox losing out to PlayStation, and GFWL losing out to Steam. The original vision of putting a computer in every living room was never really given the proper planning and execution.