Rumor: Milo canned, tech used for Kinect Fable game

Development on once Project Natal showpiece Milo, since said to be a project that would one day see retail release, has stopped, sources have whispered to Kotaku and Eurogamer, also departing with another interesting bit of info: the tech behind the boy wonder will be used for another project, one based on Lionhead’s Fable franchise.

The studio was going to include Kinect functionality in the upcoming Fable III — the studio would be “crazy” not to do so, Molyneux once said — but scrapped those plans due to the bits of the game that would use the tech not being up to scratch. Post-launch Kinect functionality hasn’t been ruled out, however.

When reached for comment, Microsoft said: “We have no news to share on the Milo front and do not comment on speculation or rumor.”