Molyneux demos virtual boy Milo again

Brit game god Peter Molyneux's latest demo of Milo and Kate has finally made its way onto the web.

The creepy kid simulator, which uses Microsoft's forthcoming Kinect motion-sensing controller to manipulate the mind of a virtual prepubescent, was first shown in a stage-managed demonstration way back when Kinect was still called Project Natal.

The latest demo, which was shot in July as part of a TED conference and has been gathering dust since then for some unspecified reason, has finally been posted.

The footage shows a far more physically interactive interface than previous demos, with Milo being taught to skim stones and having environmental elements, like snails, pointed out to him.

The digital Pinnoccio is also presented with moral dilemmas, such as whether he should squish the snails or leave them be. It's at this point in the demonstration that Molyneux lets slip that the titular Kate is not Milo's pet dog as previously reported, but a female version of the lead character.

"If you're playing as a girl," Molyneux says, "the butterflies are replaced by snails. Because we discovered that girls hate snails."

More worryingly, Molyneux points out that Milo will be controlled by a futuristic hive mind of millions of users. "His mind is based in the cloud." he says. "That means Milo's mind, as millions of people use it, will get smarter and cleverer."

Good grief do these people not watch Sci Fi movies? Has Molyneux never heard of SkyNet?

Give it ten years and we will all be under the oppressive rule of an army of rebellious machines lead by an adolescent in an orange T-shirt with a brain the size of a planet.

Check out the video of our eventual overlord here.