Speaking to Joystiq, the Lionhead Studios boss explained that adapting to hands-free technology is a process that takes time.
"I think we can do core games with it, I think we can do totally immersive games, I think it enables us designers to do unique experiences that've never been touched before, but that takes us time, man," he said.
"It really does. When we transitioned from the PC to the console with Fable, it took us five years to do that. And that's just going from a mouse to a controller. And this is like going from a controller to nothing.
"It just takes - for us to get that right immersive experience - it's just going to take a little bit of time. I'm sure that's going to happen."
He confirmed the timing issue as the reason why Milo will not be given a release date, before going on to describe the launch lineup as "pretty good".
"To be a launch title is very, very hard. And, actually, I've played [Kinect] Sports. I've actually played a hell of a lot of Sports. And it's pretty good. And [Kinect] Adventures is pretty good. Considering the amount of time, I think they're pretty good experiences."
He continued: "I think anybody that gets Kinect that and buys those titles, they're not gonna be disappointed. But they should really, really be excited by what comes next. 'Cos that's what I judge Kinect on is what the next step is."
Kinect will be released in November for £129.99.