Kinect's Project Milo Grounded?

Some sources deep inside whatever entities are developing Project Milo/Milo & Kate for Kinect have told Kotaku that the project may be shutting down. It’s just a rumor, but I can see the truth in it. When Microsoft is trying its damnedest to convince hardcore gamers that Kinect is worth their money, is there room for child simulators in the lineup?

Of course, it’s up to Lionhead whether or not to actually make the game, and they’ve put a lot of effort into it. The rumors might just be resulting from, say, certain portions of the game being completed or canceled.

I have my own problems with the idea of the game, but I’m still a bit sad to see something so unprecedented potentially getting the shaft. Remember, this is still just a rumor, so we’ll keep you updated if we hear anything else.