There was a talk at TEDGLobal 2010 about Milo, given by Peter Molyneux.

Molyneux ended the demonstration with the shocking truth that all the world's Milos are going to form a Borg-like hive mind, with the AI data "in the cloud" (as Wired puts it), continually learning from individual interactions

http://www.joystiq.com/2010/07/13/milo-meet-ted-molyneux-dem...

Very interesting...

There are at least 4 things in that video that give it away as 100% staged. Bonus points if you can spot them.

This is from 2009-- I guess the relevance again is the TED talk reported this week? http://www.wired.co.uk/news/archive/2010-07/13/peter-molyneu...

The Microsoft product for interacting with Milo is now called Kinect as of E3 2010: http://www.xbox.com/en-US/kinect

Microsoft's Xbox PR chief Aaron Greenberg has said that Peter Molyneux's Kinect-controlled virtual boy Milo is a tech demo, and that Microsoft has no plans to release it as an Xbox 360 title.

http://www.techradar.com/news/gaming/microsoft-says-molyneux...

As nickelplate already mentioned, Molyneux is an awesome marketer. Almost all of his games fall short of the hype he builds, though all of his games are also semi-revolution and unique.

Even if this weren't faked, this sounds 100 times more boring than an asteroids game. Oooh, look, I put my hands in the water and the fishes go away!

Show me gameplay.

Was that scripted or did Microsoft finally get voice recognition working?

1) understands emotion? Do i need british intonation?

2) why don't they put up a website where you can interact with the character?

Oh cool, an update to the old Seaman game for Dreamcast.