Peter Molyneux, at Microsoft’s E3 Press Conference, unveiled “Project Milo”. The game will be using the “Project Natal” camera, that Microsoft announced earlier in the press conference. In the game, you’ll be interacting with a young boy named Milo. Molyneux promised that the boy will be able to see your emotions and respond to your answers in a realistic fashion.

At one point in the demo, a Lionhead employee drew a picture of a fish, held the drawing up to the camera–which was scanned by the camera. After being scanned, Milo held the piece of paper in his hands and responded to it.

More details on the project will be posted when they are announced.