adeelarshad82 writes "At TED Global in Oxford, Microsoft released a video showing off its 'virtual human' technology, named Milo, designed for the company's hands-free Xbox 360 motion controller called Kinect. Milo is built to react to people's emotions, body movements, and voice, allowing players to interact with the virtual character. It was built using artificial intelligence developed by Lionhead studios, along with undisclosed technology from Microsoft. According to games designer Peter Molyneux, the game exploits psychological techniques to make a person feel that Milo is real. Each Milo character will be unique because every player's interaction with the virtual character will sculpt the type of virtual person Milo will evolve to become."