Xbox Gaming in South Africa

Another week, another "Project Milo is cancelled" rumour. This time it looks like layoffs over at Lionhead has prompted new speculation about the project's demise.

According to Kotaku, unspecified sources close to the project are claiming the developer has laid off "more than a dozen contractors", although this could be related to the development of Fable 3 now coming to a close.

The same source says the technology behind the Milo project will be incorporated into some other Kinect-supported title, possibly also in the Fable franchise. Fable 3 was originally supposed to include Kinect support, of course, but this was scrapped at some point during development.

Neither Microsoft nor Lionhead have yet issued any official confirmation - or denial, for that matter - of the rumour.