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What the..? Is he confused?

But I'm glad they're working on it still, hopefully it won't be too long before it releases.

famousringo said:

"Project Milo absolutely continues in development."

and

"not a game that we're planning to bring to market"

Aren't necessarily contradictory statements. The AI could be a long way from being a compelling experience, or it might be that Project Milo is meant to be research for a component in some other product rather than a product in its own right.

In other words, 'Team Milo' could simply be the name of Lionhead's R&D team looking into speech recognition and AI as it relates to gaming.

He also said it wouldn't be brought to the market this holiday, which can be interpreted as coming out next year. At the earliest anyway.