I'm thinking about the (No Internet Explorer) -> Internet Explorer 3.0 jump, which has been cited before as an example of what Microsoft is capable of when it suddenly throws the 'code red' flag (ie, Netscape and the internet are suddenly important). I can also think of Win98 -> Win98SE jump, and Visual Studio 6 -> Visual Studio 2005 (remember, they didn't start development on VS.NET/2003 until around 2000/2001).

Don't mistake speed of releases or popularity or innovation for the speed of development. Nintendo is a particularly poor example, I think, since I'm currently working with their tools... they are last-decade. I'm not even talking about the Wii's capabilities (which are Gamecube-era), I'm talking about their software: IDEs, compilers, etc. They struck gold with the Wii, but Microsoft went from (No Console) -> XBox360 within... like, 5 years? Nintendo's been playing this game for 25+ years, and without the unmitigated success of the Wii their console division would be bankrupt now (seriously!)

Microsoft's ability to develop (notably, but not limited to) software is unparalleled save for Google. Innovation, iteration, or popularization are all different matters.