@bardicverse
I think you can take it as a yes if everything goes to plan.
Don't forget this is the guy who's working on Milo and Kate so he's use to the tech already and is just the sort of thing he would want to put in a game like Fable.

Because it's extremely obvious.

- Peter Molyneux is the biggest advocate for Natal.

- Fable is a very casual mainstream light-RPG, which suits Natal well.

- Established game franchise who can be a system seller for Natal.

- Natal launches second half 2010.

-By some strange coincidence Fable III is  targeted for late 2010 as well, and is developed in only two years and surprising everyone it's announced so soon after Fable II.

Fable III will have a new "touch" feature (see front page of VGC news article) - a gameplay element that perfectly suits Natal motion control tech as using your whole body will create more immersion when you go around and shake hands with and hug people.

This didn't seem like a MS conference to me.  Seemed like a Lionhead conference.

LOL.  I would much rather have been able to kill the bad guy myself and hump his body.

I thought Halo players and the British both shared a fondness for tea bagging? Personally I can't see how it could be anything but the perfect fit!

How do you figure Fable to be a casual rpg? I thought the original was very unique in choosing your own path and all. Seemed to delve more core than traditional rpgs, imo.

A game can be developed in 2 years easily if the engine is already in tact and functioning

Natal can go either way at this point. MS is trying to lure in the Wii-Casual audience with Natal, but this is a frugal market that won't own two systems, especially not in this economy. It's going to take a good chunk of the existing 360 userbase to adopt Natal, something that is showing unlikely to happen. You have 3 groups of this userbase - First, the Natalites - the ones that said motion controls are horrible, but then praise Natal as the second coming; the Tru-Core - the ones that still hate the idea of motion control, Natal included; and the Meh Gamers - the ones that think Natal is interesting in general, but won't buy one.

This creates a third of 360 owners who wish to buy Natal, which is still 10m units, not a bad amount. Yet, that's taking into consideration that every person of that group buys Natal. Fable 3 would have to come bundled with Natal in order to make it work, like the Balance Board for Wii Fit.

If you want to make the perfect cuppa then you have to strain the bags properly

The Empire wasn't built on people who couldn't Tea bag.

''This is so frustrating because I’m not allowed to tell you what they are, but as soon as I unveil that you’ll completely understand where we’re going with it. This mechanic allows it to still be very personal. It’s still you, and you’re looking at the people you’re judging in the face.''

natal related?

Fable is a game where Natal could add additional functionality but still be completely playable without it.  There are a lot of gestuers in Fable where you could actually perform them and they would execute.  Not sure how fun that would be, but it would be easy to implement.  Facial expressions could be used to express distaste or concent.  Vocal tones and vocal commands could be used to command servants or whatever else they have planned.  Seems this game could definitely have Natal added but completely be playable without it.

LMAO I hate you peter,  this is my dream game, A rpg with RTS elements and being a ruler. 2010 can't come any sooner. please, please please don't delay it.