Fable III to be home for the holidays

Last August, Peter Molyneux revealed Fable III for the Xbox 360 at GamesCom 2009. More shocking than news of the game's development was that the notoriously ambitious Molyneux expected to have the game on shelves in 2010, just two years after Fable II.

Doubters today received two shreds of evidence that Molyneux and Lionhead Studios might actually meet that release window. First, Molyneux was in San Francisco for Microsoft's X10 press event to show off an early build of the game. Second, Microsoft stood by the original release window, going so far as to narrow Fable III's release date to holiday 2010.

During the event, Molyneux introduced a key new feature for Fable III: an emphasis on physical contact. Players will be able to use a context-sensitive trigger button to physically interact with characters in the world, whether to shake their hands or shove them to the ground. Additionally, the game will feature weapons that change and grow based on how players use them. Cooperative action is also getting a tweak, with each player able to use their own customized characters (and dogs) instead of generic sidekicks.

Finally, the developer reiterated his intention to incorporate Microsoft's Project Natal motion-sensing camera into the game. Molyneux said the game will primarily use the standard controller but will also incorporate some Natal surprises.

For more on Fable III, check out GameSpot's first look preview from X10, or watch the interview with Peter Molyneux from the event below.