If memory serves correctly, PO is more than just a game, but it is also one of the next generation graphic engines, like the next Unreal Editor.
Anywho, i also remember looking into PO back in like 2005/06 and just being blown away by the graphics and the main concept behind the game (basically an FPS D2). Plus they just recently updated their site and it seems that they are finally starting to take the steps towards actually trying to release the game.
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