I might be ignoring something, but this appears to be the first ahead-of-the-pack innovation from Microsoft that I've seen in at least 20 years. Congrats to them.
Kinect was pretty surprising too, especially at that price point. EDIT: Granted they didn't develop 100% of the tech themselves, but still: depth perception, human skeleton recognition, in real time, on a crappy 360, for 150$? That was impressive.