The gaming industry just wasn't ready for Milo and Kate's unique concept, says Peter Molyneux.

The engine that powers on-again, off-again Kinect showcase Milo and Kate is a visual marvel.

A new behind-the-scenes video from the Drama Director of Milo and Kate shows off how motion-capture was tackled for the on-again-off-again game by Peter Molyneux.

Oh dear. While Kinect Sports’ table tennis might be looking pretty good, other facets don’t appear quite as positive. Rumour is that Milo and Kate, one of the first and most exciting demonstrations of the technology has been permanently shelved. Last Updated: September 23, 2010

  So we learned what Kinect’s final pricing would be – and all those retailers that “guessed” $149 just happened to be right. We also learned how much the motion sensing peripheral would cost locally; a whopping R1999, the equivalent of nearly $265. There’s been a fair bit of outcry about $150 being too expensive for the American market – …

Peter Molyneux demonstrated Milo and Kate at yesterday’s TED – Technology, entertainment, Design – talk on human systems. It seems that Milo isn’t just a creepy virtual child locked in a digital world – he’s a creepy virtual child connected to a cloud computing system and is able to learn remotely. Just a tech demo? For the end of the …

  Backtrack much? Microsoft’s Aaron Greenberg, backtracking on previous statements about Milo and Kate – has now backtracked for a second tame, insisting that Milo and Kate is indeed a game still under development. Speaking to Kotaku, Microsoft’s Aaron Greenberg said the virtual boy – unveiled at last year’s E3 as a showcase for the company’s motion-sensing peripheral – will …

Hey, remember that awesome demo of Milo and Kate that was one of the highlights of Microsoft’s Natal reveal last year? Remember how it looked like a game harnessing some sort of thaumaturgy, allowing you to interact with a young virtual boy in a completely unpederastic manner? When it failed to make an appearance at this year’s E3, people wondered …