UPDATE: Molyneux's Milo Not For This Holiday

UPDATE: Microsoft's Aaron Greenberg has clarified on Twitter that: “Project Milo absolutely continues in development at Lionhead Studios, it is just not a product we plan to bring to market this holiday.”

ORIGINAL STORY: When Microsoft debuted the then Project Natal at last year's E3, Lionhead's Peter Molyneux showed off a centerpiece demo for the device called Project Milo. Milo wasn't at this year's E3, and now we're getting conflicting info about the status of the demo/game/thingamajig.

Microsoft's director of product management, Aaron Greenberg, says that while Milo continues to exist, we shouldn't expect to see him anytime soon. "[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.”

Although Milo wasn't at E3, there were reports that Molyneux himself confirmed that the project continued to exist, and that it was looking better than ever. The thing is: Who's right? While we totally believe the man himself -- Molyneux -- that Milo is still being worked on, it looks like Microsoft might not release it anyway.

Project Milo was named after a kid in the Natal demo who players could interact with, including speaking to him and showing him objects that the peripheral would recognize and incorporate into the experience. It was a key element towards making the technology credible at the time, and not just making Natal seem like a me-too peripheral.

It seems odd that Molyneux would continue to devote time and resources to something that would never see the light of day, so perhaps while we won't see a Milo game, per se, at least we can see the fruits of Lionhead's labors at some point in some form.