Xbox director of product management Aaron Greenberg has implied that Lionhead Studios' Milo & Kate is merely a tech demo and may not ever be released to the public.
Speaking on ABC's Good Game, Greenberg was asked why Milo & Kate was not featured at E3 2010.
"The Milo Project is something that Lionhead Studios in their labs had developed. Last year we unveiled the Project Natal technology, we showed a bunch of technology demos as part of that," said Greenberg.
"And obviously [Milo] is a technology demo that continues to exist, but right now its not a game that were planning to bring to market."
The game was one of the key demonstrations for Kinect (then known as Project Natal) at E3 2009 and involved an artificial intelligent child with which a user could interact.
The Kinect camera system enabled the child (Milo or Millie) to analyse the user's facial features in order to judge mood, while the motion sensing controls allowed direct interaction with mini-game activities.
Featuring many of the regular obsessions of Lionhead founder Peter Molyneux, from gesture-based interaction to a computer-simulated dog (the Kate character in the title), the game had its origins in the early 2000s as project Dmitri.