Peter Molynuex has just announced a new Fable game, dubbed Fable: The Journey at Microsoft’s E3 presser. The game will utilize Kinect, by letting players move their body to cast spells, participate in combat, control a horse carriage and presumably some other stuff.
From what we saw the game looked like it was on rails, but we’re not entirely sure.
The game is out in 2012 and we’ll bring you more information soon. You can see the E3 trailer, below.