The word is that the Windows Live “desktop search” project has been shelved, as a result of the recent reorg. In Sinofsky’s vision of “Live 2.0” (did I just say that?), the 6 groups rule all, giving consolidation into a Windows Live suite. The screenshot below is about as much as we will be seeing anytime soon of the ill-fated “Casino”.
Live Drive is still yet to be seen, Nemo the Media Center add-on is on hold. While thankfully someone has seen sense to stop churning out Live-branded products everywhere we look, these non-core products are the ones that can differentiate Windows Live from Google and Yahoo. Hopefully we’ll see them or their technology in other products in the near future.