Microsoft, the technology company, introduces Milo, a "virtual human" that is designed to react to a user's body movements, emotions, and voice. Peter Molyneux, the veteran UK games designer is credited for creating the technology. Speaking to a TED (Technology, Entertainment and Design) global conference, Molyneux says that he wanted to create a character "that seemed alive, that would look me in the eyes, and feel real".The game is controlled using Kinect, the company's hands-free Xbox 360 motion controller.

Molyneux calls Milo "a new revolution in storytelling." "Films, TV, even hallowed books, are just rubbish because they don't involve me. It's a sea of blandness," he said.

Milo was first introduced in a demo at the 2009 E3 expo. However, until the TED conference, he had been hidden away. The technology's live demonstration was conducted with the use of Microsoft's soon-to-be released Kinect controller. Kinect has a series of sensors, cameras and microphones that tries to interpret a player's intentions.

The demo saw Milo walking around a garden, throwing stones and confiding in the assistant controlling him that he had been told off by his parents. "No two people's Milos can be the same - you are actually sculpting a human being. Some of the things you are doing will change the course of his life," Molyneux said.

The game was made using artificial intelligence developed by Lionhead studios and technology that Molyneux says was "hidden in the dusty vaults of Microsoft." The technology also allowed users to have complete control over subtle facial elements. An example would be the diameter of Milo's nostrils, which may be an indicator of stress.

Microsoft is said to have no immediate plans of releasing the technology. However, Molyneux hints that the game may become a commercial product later on.