Milo was one of the more intriguing demonstrations to come out of Microsoft’ initial unveil of Project Natal at E3 a year ago, showing off a young boy interacting with a designer. The game made no public appearance at E3 this year, and Microsoft Product Management Director Aaron Greenberg has indicated he doesn’t expect it to release as a full game.

“Milo, he’s safe and sound back in England. No the Milo Project is something that Lionhead Studios in their labs had developed,” said Greenburg to Australia’s ABC TV. “Last year we unveiled the Project Natal technology, we showed a bunch of technology demos as part of that. And obviously [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.”

However, a Microsoft rep said later that 50 people are working on Milo and Greenberg then tweeted, “Project Milo absolutely continues in development at Lionhead Studios, it is just not a product we plan to bring to market this holiday,” indicating that it may be coming in some form, sooner or later.