Back when Kinect was first introduced — you know, back when it was known as “Project Natal” — gaming god Peter Molyneux demoed an interactive simulation that featured a real-life human interacting with a virtual boy named Milo. They had an entire conversation, could read each other’s emotions, exchanged a pencil drawing, and more. It was cuh-razy. Interaction at a level the gaming world had never seen before.

The eleven minute video above features Molyneux giving an updated demo of the technology at a TED talk that took place earlier today. Now, Milo can learn, listen, recognize, and respond just like a real eleven-year-old boy. It’s utterly astounding and points to the future of gaming where nearly anything is possible.