Peter Molyneux has hinted that Fable II could be made available as a full digital release on Xbox 360.

The Lionhead Studios boss refused to confirm any concrete plans, but told GamesIndustry.biz: "I think it would be a great thing for this studio to work on."

Pressed on whether there were already plans for the critically-acclaimed RPG to be made available over Microsoft's Live service, Molyneux said: "I can't say anything else on it – I would be killed to death."

Microsoft, which already offers full original Xbox titles for download via its Marketplace service, has never formally revealed intentions to make full retail 360 titles available, but industry watchers have long predicted this could happen later in the console's lifecycle.

Molyneux's enthusiasm for a digital release comes after the success of the original Fable, which was made available for download on 360 earlier this year as part of the Xbox Originals range.

"It did really, really well," he revealed. "It was one of the highest selling, if not the highest selling, [Xbox Originals title]. I didn't track that exactly, but I know a lot of people got very excited about it when it came out."

Fable II released in Europe on October 24 and topped the UK charts after its opening weekend.

However, slowing sales, a crowded marketplace and tough economic conditions prompted UK retailer Gamestation to slash the price of the game by more than half its RRP to GBP 19.57 at the end of last month.

"Any way that more people can play it, the better," insisted Molyneux. "Normally I'd feel quite emotional about that, but at the moment I just think it's a reflection of where we are when people will struggle to spend any money at Christmas at the moment."

He added: "It's hard to see any products that aren't being discounted and it seems like retailers in this country are focusing on different products every week. If this hadn't been this time last year, I don't think it would have happened."

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If Fable 2 goes this route, surely the rest will follow.