Peter Molyneux sort of announced that Fable III would support Project Natal, Microsoft's upcoming response to the Nintendo Wii motion sensor controller technology. This was hardly surprising, since Molyneux was a big part of the Microsoft's Natal announcement at E3. Although there was also some stuff about a virtual boy named Milo who has some sort of creepy bond with Molyneux's assistant (pictured), but I still haven't figured out what that has to do with Natal. Molyneux also said Fable III would include microtransactions. Although he was speaking to a small gathering of other Brits, word got out. You could imagine yourself waving your hands around to spend Microsoft points on new hats, more dog tricks, and enhanced farting animations.

But now it turns out that none of this is ready to be announced yet true. Microsoft has since clarified to Gamespot that Molyneux was merely speculatin' about a hypothesis, as it were.