In an announcement that comes as no surprise at all, Lionhead Studios Creative Director Peter Molyneaux confirmed that Fable III will be compatible with the Microsoft motion sensor technology currently known only as Project Natal. It has been rumored that Natal will be ready to go some time in 2010, but it’s doubtful that this third chapter in the beloved Fable franchise will require the sure-to-be-pricey addition to your Xbox 360 system.

No details were included as to how the system would apply if you play Fable III using it, but it could be really good and it could be really bad. When Natal was shown off at this year’s past E3 Expo (Click to read about E3 & watch the Project Natal demos), the demonstrations blew minds (for the most part), with Lionhead and Molyneaux’s introduction of the boy Milo as the real jaw-dropping moment. Natal was also promoted as the future of gaming, where people will be able to play all of their games with no controllers at all, using only their body and movement. In these two things is where we find the possible pros and cons.

Peter Molyneaux, Creative Director for the Microsoft owned Lionhead studios, was in Germany recently and made the announcement of a little game called Fable III.

Anyone who loves the games knew that a third game would be coming eventually, but with four years between Fable and Fable II, this is pretty exciting news. And not only was the game announced, Molyneaux stated that it would be released for the holiday season of 2010. Yes, that’s right, Fable III will be out (barring any push-backs) one year from this Christmas!

While this announcement is thrilling to fans such as myself, details of the game are few. Then again, any details at all this early into development are a treat in and amongst themselves, so we shall take whatever we can get our greedy little gamer hands on.

Click on over to read a quote from Peter Molyneaux and to get a brief idea of what Fable III will be like.