According to sources close to the situation, Peter Molyneux and Lionhead Studios‘ project Milo has been canceled, like officially and for real this time. The biggest indicator supporting this rumor is that 19 contractors who had been working on the project were let go.¬†But don’t fret Milo fanboys. The technology behind Milo may not be lost. Apparently, the same sources that claim Milo was canceled also claim that the tech behind the boy will live on in a Kinect-enabled game taking place in the Fable universe.

After thinking about it, I believe this might the right call. Milo as a tech demo looked impressive and showed that Kinect could be used for so much more than just mini-game collections or Wii ports. It showed promise for advancing games into a type of interactivity that had not been seen before. It was exciting to be sure. But after its public demonstrations and coverage in the gaming and mainstream press, it always seemed like just that, an exciting tech demo.

Now do not get me wrong. I am not saying Peter Molyneux and the people at Lionhead Studios could not have turned Milo into something more. Perhaps even an actual game. Heck, if anyone could do it, Molyneux certainly could. But me personally, I never saw the game. I never saw anything that made me want to interact with Milo as it was presented. Yes, the technology impressed me. Yes, I thought it made for a good presentation. But I did not think it looked like something I would want to pay $60 for and spend hours playing with in my home.

But because it looked to be pretty well along and because Molyneux seemed to have such a passion for it, I was a little sad when I first saw the rumor that Milo might actually be canceled. But thinking about the technology perhaps being used in a Fable game makes me excited all over again. Fable is a universe I already know and love. Fable is something that has shown me it can be a great game and fun to play. So now if Peter wants to add some Milo tech into that world, I am all for it. And if that means Milo, the little boy, might never see the light of day, that is OK too.

What do you Ranters think? Are you sad that Milo might be canceled or does imagining that technology used in a Fable game make up for it? Let us know in the comments.

Sources: Kotaku; Eurogamer