First off, watch this video.

Lionhead  

Peter Molyneux’s sample project, called Mylo, seems to represent a new evolution in games. It features a young boy who the user can interact with using the Project NATAL camera.  It was just plain creepy. He appears as almost a shell of a human being. This is an example of the uncanny valley effect in motion. It is cool that this is able to be done, but Mylo is too real to be real. The interaction between Mylo and the woman in the video seems scripted in a way, and a live demo would have been nice. Molyneux sprung too quickly to mention that the demo was only available behind closed doors. I will hold back complete criticism until the hands-on previews come out, but Mylo appears to be a prime example of Molyneux’s problem of overstating his games.