Remember the very first demo of “Project Natal” at E3 2009? It was a game called Milo brought to you by Lionhead studios. You got to interact with a virtual child who responded to your movements and voice. It wowed everyone and showed the potential for Project Natal.

Xbox director of product management Aaron Greenberg was interviewed on ABC’s Good Game (Australia), and was asked why Milo & Kate was not featured at E3 2010.

“The Milo Project is something that Lionhead Studios in their labs had developed. Last year we unveiled the Project Natal technology, we showed a bunch of technology demos as part of that,” said Greenberg.

“And obviously [Milo] is a technology demo that continues to exist, but right now it’s not a game that we’re planning to bring to market.”

So no Milo for You. This is probably a good thing in the end. I doubt they have been able to program all the necessary responses into the game since they were not able to do so for the tech presentation. Better that they start with Kinectimals and work their way up the intelligence chain.

UPDATE: Greenberg has “Clarified” his earlier statements on his twitter account. Milo will be made. Just not this year.

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