[xibernetik]

If you look at the latest Windows Phones (seriously, Apple and Android have virtually identical interfaces - the odd one out is Microsoft) and Windows 8 (yeah, it isn't on the market yet, but they released the beta), that's clearly not true. There was the Ribbon too in Office, which was radical enough a lot of users complained during release. They released the Surface and Surface 2.0 as well, though I don't know how strong their market is. Bing has done some interesting things, particularly with video search and maps. I've just gone through 5/6 divisions, 5/7 if you include Skype.

All of this aside, Microsoft hasn't needed to innovate to the degree of the other big players for a while. Apple needed to innovate in order to secure some set of markets in order to survive. Google wants to innovate since it needs to gather more data to boost its ad business. Amazon wants to be the retailer for everything, and anyone selling anything else (e-books, music, movies - notably) cuts into their profits, so naturally they want to cut into those markets first. Microsoft... had Windows and Office, no real issues there until Apple started to edge in on the consumer market alongside non-PC devices. Even prior to that, Vista was an attempt at innovation that resulted in major screw-up for a ton of reasons, Windows 7 was the fix. Is it really any surprise we're only seeing real innovation (in Windows) now?