I reject this entirely.
You refer to a "formula" and use God of War, presumably the new iteration, as an example of risk-averse behavior. The trouble is that this new God of War was born out of taking a risk. After 3 mainline games, a spinoff and who knows how many portable titles of the original character action GoW, Sony allowed SSM to completely gut the IP in terms of tone, aesthetic and gameplay style after initially allowing them to try a new sci-fi IP that fell apart mid-development. To this point, there have been 2 nu-GoW titles, and the next one will undoubtedly fundementally change the franchise yet again. For whatever reason, people seem expect Sony to throw out game frameworks after 1 or 2 instalments, and everyone else can rehash with impunity. I'm not going to get into the nitty gritty of every "risk" particularly ND and SSM have taken, but it's more than people give them credit for. If anything, Sony's department that deals with this would advise their studios that they need to be proactive in keeping things feeling fresh in order to maintain that level of score.
Anytime someone posits this "innovation" thing like it's an ultimatum, it just rings self evidently wrong. Innovation is quite a nice buzz term, but doesn't mean much. Hate to say it, but a lot of things that can be coherently done in this medium have been done already. I'm not seeing anything really new or "groundbreaking" from anyone else in the industry. Indies and Kickstarter hopefuls are going through the nostalgia catalogue and making low rent spiritual successors or comps to games of the distant past or hopping onto the farming sim/isometric adventure game train, definitely not copying Stardew Valley or Transistor or anything like that. Meanwhile, half of the mid-tier studios seem to be doing a Bioshock impression, or an assorted mishmash of other recently or currently hot ideas with a new coat of paint, often times taking the better part of a generation to get it done, and have an underwhelming product at the end of all of it.
Even if any of that counts as "innovative" the fact is that people don't show up for it. Doing different stuff just for differences sake is a negative if it means quality is subpar.