If this is all sounding creepily familiar, it is probably because so far, all of this is exactly what NYU researcher Jeff Han has been demonstrating for a year and a half now. I’ve written about it several times on my Pogue’s Posts blog.
I thought it sounded familiar too, but I couldn't remember the details. This must be the one.
But I'll at least give Microsoft credit for "pushing" an idea who's time may not have come yet, knowing it may lose money for a long time (whether it loses money for Microsoft or the hardware company that they rope into the deal remains to be seen). No, it's not really innovation, but it is at least more in the direction of innovations that many of the things they apply that lable to.