News: Rumours indicate cancellation of Project Milo

According to Kotaku, Peter Molyneux's Milo & Kate (Project Milo), a motion based interactive game for the Xbox 360’s upcoming Kinect peripheral, may have been cancelled by Microsoft.

Citing sources claiming to have knowledge of the games' development, the ambitious project is rumoured to have ended up on the drawing room floor.

A video demo of the project was first shown at E3 2009 to the amazement of show goers. The 'life simulator' showed a woman (Kate) interacting with the virtual Milo through the use of the Kinect camera, indicating things on the screen for him to interact with, having conversations and showing an astounding level of intelligent AI interaction.

It's believed that the technology that powers Project Milo will live on in another form, possibly being used in an upcoming Fable game by Lionhead Studios (but not the upcoming Fable III).

Neither Microsoft or Lionhead Studios would give comment regarding Project Milo, so while it's still squarely in the rumour mill, the future of the project isn't looking as bright as it once did.

Rumours indicate cancellation of Project Milo

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