The work on Fable III is already well under-way, and with promises of a Holiday season 2010 release date, the folks at Lionhead Studios have a lot on their plate these days. None-the-less, things seem to be going well, and after some big announcements made recently, the studio has released a new video diary to warm up your excitement levels for the third adventure.

Lionhead top dog Peter Molyneaux recently spoke at the X10 convention, and arrived with promises of the announcements of major changes to the Fable franchise that would likely leave many angered. As it turns out, all of the big changes actually sound pretty exciting, and, depending on how well the concepts translate to gameplay, they could make for a very cool, very unique Fable III experience.

Among the many changes being reported out of the convention, it looks as if Lionhead is ready to take our hand (literally) and guide us away from the games that we’re familiar with today, including Fable II. For example: there will be no more health bars or orbs of experience or any of that. Everything will depend solely on who you are and what you do with your Fable III life.

Click on over to read more about Fable III and watch this first sneak peak into our next adventure!