Fable developer Lionhead was working on an ambitious Kinect-controlled game, Milo & Kate, and developing new engine technology to go with it. They showed off some of that new tech at GDC and, well, it's really, really good looking.

Game designer Peter Molyneux, he of Populous, Fable, Black & White, Kinect's Project Milo and lots of really great promises, won a lifetime achievement award at the Game Developers Conference this week.

Call it Project Milo. Call it Milo & Kate. Call it, last we heard, canceled. You can also call Lionhead Studios' attempt to use the Xbox 360 Kinect sensor array to let players interact with a virtual boy a more ambitious effort than anything else we've seen using Microsoft's popular new tech.

One of gaming's big dreamers, game designer Peter Molyneux, showed us Project Milo — a controller-less game about a virtual boy — two Junes ago. There was potential. There were hitches. A year later, Milo's made a lot of progress.

Lionhead's Peter Molyneux and assistant Dmitri wow the crowd at TEDGlobal 2010 with a demonstration of Milo, the virtual boy.

Peter Molyneux appeared on stage today at the TEDGlobal 2010 to show off Milo, the virtual boy for Microsoft's Kinect that failed to make an appearance at E3 2010. How far has the character-driven game come since Project Natal's debut?

I was fairly impressed with Project Natal's ability to strip away the physical controls for Burnout Paradise and still deliver and relatively similar racing experience. But the kick ball game, designed specifically for Microsoft's motion controller, wasn't quite as impressive.

Between trailers, teasers and gameplay footage, there's almost enough movie time here to warrant an entire evening's worth of popcorn.

I talked to Peter Molyneux's virtual boy on the Xbox 360. He liked the color of my shirt.