Next-gen DOES just mean a hardware upgrade though. Whether new stuff comes with it in terms of control systems or whatever doesn't make it any more or less next-gen. The X-Box, PS2, and GC were all more powerful - and little else - than the DC, PS1, and N64, and now we all quite blithely consider those to have been the next gen. It's not even up for question that the PS2 wasn't a next-gen console, because it clearly was.
I think he means 'innovative', which has nothing to do with next gen, but the latter is likely a more powerful statement.