MS hasn't innovated in 20 years.
I don't agree that Microsoft hasn't innovated in 20 years. The Xbox had quite a lot that the competition lacked at the time, the Windows Phone has a rather different approach to other handset OSs & the continued development of Windows 7 and Windows 8 is has been rather different to the one Microsoft (And other PC operating systems) have traditionally taken.
MS' biggest problem is the person at the top - Steve Ballmer. He has no vision whatsoever and at best is a chief operating officer.
In all the examples I've given above, are all projects Steve Ballmer has had very little input in. As a CEO, you couldn't pick someone who was more of an unimaginative, direction-less bureaucrat and it shows from everything Microsoft did from the late 1990's until recently. I don't know what's happened in the last four years but Microsoft have really gained some direction and begun to really innovate.
The problem it seems is Microsoft is now working in the shadow of Apple in terms of the failed Zune and now the Windows Phone, that's not to say they're bad devices, but they're trying to innovate in areas where Apple dominates using a very different approach. To the point where it's given Microsoft a huge disadvantage if they want an innovative/different product to succeed.
Then again, these Microsoft stores appear to do nothing more than to follow Apple. There are advantages to how Apple handle retail, but the way in which MIcrosoft have done is appears to be nothing more than copying the competition.
If a 6600 used paper tape instead of core memory, it would use up tape at about 30 miles/second. -- Grishman, Assembly Language Programming