Microsoft's Aaron Greenberg

Well, we weren't too surprised frankly, because we knew what we were unveiling with our launch line-up was targeted primarily at a broader audience.

But there are a lot of great experiences there for everyone, whether it's new ways to access and control your entertainment, be it movies and music, or new gameplay experiences. Dance Central, where Harmonix is building a new music game from the ground up for Kinect, is a great example. Nobody would say Rock Band is just for the casual audience. Everyone plays Rock Band. This is another great experience in that line.

That said, we know there are a lot of core games in development for Kinect that we obviously have not unveiled and announced yet. We feel confident that as we start to share more of that news, that reaction will be muted, for sure.

Peter and the team are doing great work on Project Milo, and he just demoed it at the TED Conference. It's definitely not just a tech demo. They're building something pretty unique and compelling.

We leave it up to Peter and his team to determine what that game is and when it would come to market. All we've said is that at this point in time it's not coming this holiday. But as you can see it's definitely quite a bit more than just a tech demo.

Sure. It's a great showcase of the technology and it has the opportunity to be a very compelling experience. You've seen a huge leap over the last year from what we unveiled at E3 last year, to what Peter is showing this year with Project Milo.

They'll continue to build on that. What that turns out to be and how it gets brought to market all remains to be seen. We're fortunate to have one of the brilliant creators of our industry pushing the boundaries of creativity with this project. It's been exciting for people that have seen a preview of it.

He [Peter Molyneux] is best to speak to about what this product will eventually become.

Well, there are a whole variety of factors. But for now it's in Peter's hands. Peter serves as our creative director for all of our studios in Europe. What he and his team at Lionhead are doing with Project Milo is just one example of the type of great innovation that's coming out of Europe.

What that turns out to be and all those details all remain to be seen. It's not something we're bringing to market this holiday, so we're going to be a bit more vague about it than if it was launching in a couple of months.