http://xbox360.ign.com/articles/101/1019820p2.html

IGN AU: It's fundamental – the mechanics behind that. Natal is different by its nature – but it's the concept and intentions behind it that are key.

Peter Molyneux: The interesting thing about touch that you really discover its worth once you implement it. You can grab someone – really grab them and drag them, or hold their hand, when you're passing judgement on someone as a king, you can literally grab them and throw them in the dungeon. And because you can do that to someone, with them kicking and fighting against you, it just feels a lot more emotional and ethical that just pressing 'B'. It just does. And you're right about that connection with Milo.

Yeah that's good news, it wouldn't work with Fable III. I can't wait to get Milo.