Disregarding Mornelithe's [http://www.escapistmagazine.com/forums/read/7.232466-Sony-We-Are-an-Innovative-Company#8172592] to-the-book definition of innovation for a second (though I agree, what a shock), I'd say they do more "innovation" for their games than their hardware.
I mean, any company that still houses Team ICO, even though both their games basically bombed financially, is a company that supports goddamn innovation!
I mean, any company that still houses Team ICO, even though both their games basically bombed financially, is a company that supports goddamn innovation!