If you check the released information you'll see that it has grown far beyond Fable 2.
The industrial revolution is beginning, though earlier in Albion than in Britain (if the cultures are apt for comparison), so the fires of industry are beginning to drive back those hostile wilds. As ruler you can encourage or restrict it, the landscape itself may have morph channels. the dungeons themselves are vast and cavernous, unlike the claustrophobic spaces we've already seen.
The touch mechanic is very interesting. While emotes remain, they take a back seat to the ability to hug your wife, bounce your children in the air and take people by the hand. In one demo, Molyneux offered his hand to a beggar, who took it eagerly thinking he was being taken home for dinner. But when a workhouse loomed around a corner, he began struggling and pulling against the hero, begging not to be sold to "those fiends".
Co-op is proper this time, with your entire hero and your dog going into other people's games with their own camera. they can go off by themselves to some distant corner of Albion and really fuck shit up if they so wish. You can use touch to interact with other players, and even marry them.
http://www.joystiq.com/2010/02/16/fa...ns-into-frien/
Other expressions morph with your character. Good characters can materialise giant wings on their backs and illuminate the world, revealing their true form and impressing villagers, intimidating foes. Evil characters get rather scarier wings. Wielding light swords will keep your character slim and sinuous, throwing an axe around will bulk up your character. The HUD and experience orbs are gone.
Also, weapons have morph channels, dependant on how you use them, and on your gamerscore (in some way, making that e-penis good for something). Save innocents with your sword and it might shine brightly, create the evil sword of the ages by slaughtering the innocent, it will drip with blood. Killing hobbes makes it grow spikier, hollow men make it grow blunter. Then your sword will be named after you and can be sold on-line.