Remember Milo & Kate, Peter Molyneux's Kinect-powered boy-simulator? The game that we simply weren't "ready" for according to Molyneux, who quit Lionhead after the game's cancellation? Ever since its curious (and suspicious) E3 debut, many had wondered: was it ever a real game?

"I don't think we knew, to be honest," creative director Gary Carr said. "I'd describe Milo & Kate as a development experiment that somehow found itself in full production," another team member added.

Although the developer never figured out if it was really a "game" or not, significant progress was made before its cancellation. According to a new report on Polygon, Milo & Kate had about 80 people working on it at peak, and it was "approximately 60 percent through development." According to their sources, "it could have been finished with an extra six months of production, though it would have felt rough if that happened."

Many blame Microsoft for the game's cancellation, with the publisher skeptical the game would sell. One source suggests the game was canned because it simply didn't work as well as Microsoft would had hoped. Early on, Microsoft had tossed around the idea of making the experience a pack-in with Kinect hardware, and discussed the possibility of breaking the game up into pieces and releasing it episodically. But at the end of the day, Carr notes that the studio had to "start paying our way" and end up working on something "we can probably sell back to Microsoft a lot easier." Hence, Fable: The Journey, which ended up incorporating much of the tech developed for Milo & Kate.

Although no one at Lionhead is toiling away at Milo anymore, Carr says that the company won't forget about the possibilities. "Lionhead doesn't currently have anyone tinkering on Milo in a corner, but is leaving the door open for the future."

"Nothing ever goes away," he says. "Whenever you're in the creative business, these things somehow come back in some form. It might not be a boy. It might be something else. But these kind of things tend to come back."