I can't imagine how hard it will be to make next gen today character with Milkshape.

Why not taking and learning Blender ?
it's free, and have all you need , modeling with all feature (edge loop select, edge loop cut etc ...) , rigging , animation (weight painting, inverse kinematics ...), high poly sculpting, retopology paint.
I'use all these features that speed up a lot the work : it rocks.
Well paying 400$ to make old low poly games ? why not !