I think the last truely innovative game that came out was the latest Elder Scrolls game.
BTW.. anyone ever play Postal II ? I LOVE that game (I'm a sick puppy). There's something very thereputic about it. I love the fact that you can pretty much run around and do anything you want in that game. It was a riot with very little scripting and a LOT of freedom of movement. I think it was brilliant, but the um... violence will turn a lot of people off, even though it's more of a cartoon parody of violence (and everything else Tipper Gore would say is wrong with the game industry). Ironically, there's a Postal movie coming out soon. I've seen the trailers.