E309: FIRST FOOTAGE OF LIONHEAD’S NATAL-ENABLED VIRTUAL FRIEND MILO

In case you still haven’t made it through archive video of Microsoft’s E3 conference, meet Milo, the virtual playmate from Black and White and Fable producer Peter Molyneux and his cohorts at Lionhead.

In the works for some time now and originally known as Project Dimitri, Milo will use Microsoft’s just-announced motion/voice/facial recognizing hardware Natal, allowing you — as the video above only slightly unbelievably promises — full, fluid back and forth conversations with Milo, and other fourth-wall breaking tricks like “handing” Milo a drawing via instant Natal scanning, a drawing he will be able to recognize as well.

Watch the ‘real magic’ in the video above, and see Joystiq’s live demo impressions for some early real-world interaction, who also note that, yes, there will be a ‘Millie’ for those that are more in need of female companionship.