Perhaps the most impressive part of Project Natal's (now Kinect) announcement at E3 2009 was a demonstration of a Peter Molyneux game called Milo and Kate. Unfortunately, this game may never see the day of light.
Milo was a sort of social simulation. You interact with a boy named Milo and a dog named Kate. The game utilized the body and speech recognition capabilities of Kinect to make these interactions as real and responsive as possible. The E3 2009 demo is below.
Eurogamer reports that development on the game was officially halted yesterday. Lionhead Studios let go 19 contractors attached to the project. The technology developed for Milo will be used for a Fable Kinect game.
Microsoft gave Eurogamer a "no comment" when they asked for confirmation. The fact that they didn't slap down the rumor like Dikembe Mutombo makes me think there might be some truth to it. Impressive as the demo was, Milo was a pretty exotic concept and might've been a tough sell for Microsoft.
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