theodp writes: In Microsoft's final CES keynote, a demo showed how children would soon be able to jump into Elmo's World with Kinect Sesame Street. But Elmo's World has been rocked lately — the puppeteer who has animated him for the past 28 years resigned from Sesame Workshop earlier this week because of the 'distraction' of underage-sex charges against him. So, it was kind of surprising to see the Elmo Xbox 360 game featured in the Microsoft Store's limited selection of Black Friday items (reduced from $29.99 to $9.99). So, did this represent a conscious decision by Microsoft to stand by the lovable Muppet, a close-out of an item that's now recognized to be tainted, or simply another Microsoft marketing misstep? In any event, it doesn't look like parents are taking things out on Elmo — the Black Friday deal sold out. By the way, Bill Gates is also big on the Muppets, having just awarded a $2+ million grant to Sesame Workshop (presumably still tax-free) to 'develop an evidence-based multi-media intervention for the promotion of positive behaviors related to sanitation and hygiene in children and their caregivers in Bangladesh, India, and Nigeria.'