I think one reason the xbox looks like a great success is due to how badly the ps3 sucks, and how stupid Sony got. £300 for a games console is ridiculous, and basing it on a soon to be obsolete bluray standard is just more idiocy. They never seem to learn - minidisc, UMD etc - they always try to lock in these ridiculous new formats.
For me, the only innovator lately has been Nintendo. They have absolutely turned gaming on its head, and come out with some truly imaginative games that focus soley on fun and gameplay. They've captured amazing large new markets of gamers who have never played before.
The xBox is a good all round console, but it's just more of the same IMHO. I don't see much innovation going on there. I'm sure ms are pleased with xbox, but I wonder just how much money they've lost in total doing it. Maybe they'll break even in the next generation, or maybe Sony will realize just how stupid they've been. Maybe they'll go back to their playstation 1 roots.