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QUOTE said:Peter Molyneux's Milo & Kate (Project Milo) has been 'shut down' by Microsoft, according to sources close to the project.
Molyneux had previously admitted that MS was uncomfortable about releasing a game in which you talk to a child throughout - and now it appears the platform holder has taken decisive action.
According to Kotaku's sources, the technology behind the game will now be used in a Fable title for Kinect.
Lionhead ditched incorporation of Kinect controls in Fable III earlier this year.
The site reports that 'a dozen' staff on the game have been laid off due to Microsoft's decision.
Milo & Kate has endured a patchy history at MS. Xbox product director Aaron Greenberg claimed in June that the game - first seen at E3 2009 - would never get a commercial release, but then backtracked on his statement.
In the same month, Microsoft studios boss Phil Spencer suggested that the tech used to power Milo had been implemented into Kinect launch title Kinectimals - something later denied by the game's creative boss, David Braben.
The 'sensitive' nature of Milo's subject matter hasn't been lost on industry observers - including a certain Charlie Brooker.








