Harnessing the motion-sensitive camera in Microsoft's Project Natal, Molyneux hopes to breathe that life into a young boy -- or girl! -- named Milo (or Millie!). While he admits that much of it is "smoke and mirrors and tricks," he provided some interesting insight into the technology put to use behind the scenes. It seems Milo won't just recognize you (his imaginary, otherworldly friend), but everyday objects as well. "Firstly the process of scanning is really lovely, you just reach your arm up, you can also scan in three dimensional objects, for example if you are eating an apple you can give that apple to Milo and he will carry on eating the apple," the Lionhead lead explained. But will Milo scan candy held aloft by strangers?

"Or the other thing that is amazing about this technology and this is the online portion of inspiration, we are collecting continuing to collect and improve his object recognition skills." If his plans come to fruition, Molyneux envisions "all the Milos that will be released" feeding their observations into a centralized recognition of "everything in the world."

To Skynet alarmists: Have you seen this boy?

In an interview with Joystiq, Microsoft's Phil Spencer said he wouldn't be surprised to see Project Natal integration in Fable 3. Another person who wouldn't be surprised? The guy in charge of Fable 3. Peter Molyneux told Game Kings that he was "leaving the most exciting gameplay stuff for later." He then added, "I am going to say it's going to use a controller, but I've never said it's not going to use Natal."

"And obviously what would probably happen if I started talking about this is you would see a little red dot appear moving on my forehead," Molyneux continued. "And then as I would start to speak the words then there would be a shotgun fire, and I would be assassinated. Quite clearly, it is that sensitive." But not so sensitive that he can't quite nearly confirm it in the next breath.

"Do you really think, knowing me, as maybe you do over the years, I wouldn't want to use something like Natal? I mean, that's just mad, man." Let's just lay it out here: The guy responsible for basically the only known Natal project is going to put some Natal segments in Fable 3. We all know this. It's going to happen. Try to look surprised when it's announced at whichever trade show next year.

[Via IGN]

The first installment of Fable II Episodes is available now on Xbox Live -- for free. Think of it as an extended demo for the magical adventure that became the Joystiq Game of the Year for 2008. We have no idea where exactly the first episode ends and, more importantly, we have no idea how much the next servings will cost (we're waiting for confirmation).

Depending on the total price, it may be better to pick up a physical copy of the game or wait for the "game of the year" edition. Don't let the first-hit-is-free drug dealer tactic reel you in while alternatives exist, friend.

Microsoft Game Studios' corporate vice president, Phil Spencer, doesn't seem like the easily startled type. In fact, on the list of things that wouldn't catch him off guard, the incorporation of Project Natal into a high-profile, Xbox 360-exclusive franchise probably doesn't sit very high. Perhaps a few spots below lots of people buying a new Halo game.

During a Tokyo Game Show interview (look for the full transcript soon), Spencer told Joystiq that the innovation fostered inside Lionhead Studios made it a good match for Microsoft's forthcoming motion control system. "You know, Lionhead's been a real innovation studio for us," he said. "We have the release of Fable 2 episodic this week, where they're taking Fable 2 and breaking it up into chunks, allowing people to buy the content at their pace. Fable 2, I thought, was a great release, with the orbs they added with Live, adding new functionality to the franchise. It wouldn't surprise me in the least if Natal found its way into future iterations of Fable."

Whether or not motion functionality will show up in 2010's Fable 3 is a matter of speculation, though your role as king in that game would certainly lend itself to some interesting ... regal maneuvers. Waving your hand to permanently dispense with an annoying peasant? That's our kind of role playing.

Update: It would appear as though Lionhead Studios' website has been overthrown by not one revolutionary but a series of them, as the site has updated today with a numeral five (countdown!) and an image of Maximilien Robespierre. Oh, you don't know who he is? He's one of those copycat French revolutionaries. A famous one, we promise. Now we're just hoping that at the end of the countdown, Lionhead doesn't overthrow the Internet.

Don't you just hate it when your website gets overthrown by a long-dead South American revolutionary? Happens all the time! Well, okay, we're embellishing a bit, but it seems as though that's happened to Fable 2 developer Lionhead Studios' website. As you can see in the image above, Che Guevara's questioning gaze posits, "At the risk of seeming ridiculous, let me say that the true revolutionary is guided by a great feeling of love," accompanied by a massive six.

Sure, that could be six years or six celestial bodies orbiting around Lionhead prez Peter Molyneux's head at any given time, but we're thinking it pertains to a "special announcement" at next week's Euro convention, Gamescom, by the (in)famous developer. The email from Microsoft says, "Peter Molyneux, visionary developer and Creative Director of MGS Europe, will make a special announcement, so be sure to join us for this reveal." In the meantime, we'll be busily clicking between the thumbs up or down choice below Che's silhouette, watching as the sidebars change.

It's called moral choice, folks. It's kind of popular.

Concept and execution are two totally different worlds. Although the concept and initial presentation of Lionhead Studios' Milo blew everyone away at E3 2009, what does fate have in store for the little digital boy's longterm execution? IGN attempts to answer that question in a little sketch they put together. We all know Milo will lose his innocence once he's in the hands of normal people, but just how bad will it become? Check out the video after the break.

Last Friday's New York Times "Wedding/Celebrations" section announced the nuptials of Ms. Amy Gilbert (who is studying for her Ph.D. in molecular medicine in London) and Joshua Atkins, the "lead game designer for Fable III." Would this be be first tandem wedding and game announcement? Although Fable III doesn't officially exist, Atkins has been with Lionhead since Fable and is listed as a part of the design team at Microsoft Game Studios in the Fable II manual.

This isn't the first time Fable III has been unofficially mentioned: British talk show host Jonathan Ross tweeted in March that he was approached to do voice work for the game. Of course, we've contacted Microsoft for confirmation of Fable III's development. We absolutely can't wait until the company pulls "we don't comment on rumor and speculation" on this one.

PS: From all of us at Joystiq: Congratulations to the happy couple!

Update: Microsoft's official statement: "We have nothing to announce regarding future Lionhead Studios projects."

[Via Kotaku]

Update: Okay folks, it seems to be showing up at the discounted price now (make sure you're signed in to Xbox.com). The deal is for Gold members only.

For all of you wannabe Meteorologists out there, the problematic weather of Fable 2's Knothole Island awaits you and all of your cunning. The Lionhead community blog reveals the DLC will be discounted up until July 5. Normally 800, the DLC will receive a price cut of 30%, knocking it down to a more manageable 560.

You already know our thoughts on the add-on, so we suggest you stock up on mainland items and head to Knothole Island for some rare goodies in the Box of Secrets. And, you know, tackle a dungeon or three.

Add Knothole Island to your download queue

According to sources at GamesIndustry.biz, Peter Molyneux has been promoted to European creative director for Microsoft Game Studios. Strangely, it appears as though he was promoted to the position as far as three months ago. Phil Spencer, general manager at MGS, confirmed the promotion, and said, "the best way for us to make sure our platforms evolve in a way that enables the best creative experiences is to make sure our creative leaders are closely tied into the work that's going on with the platform team."

Molyneux says the promotion won't put him in a position to turn down game titles but rather to foster creative development. Molyneux said, "I'm definitely not going to go in and say 'this is a dumb idea' and 'this is a good idea' ... I'm more about making sure they really are doing the experiences they're passionate about, because passion is really central." The man responsible for Joystiq's 2008 Game of the Year award will remain in charge of Lionhead Studios.

The studio could be gearing up to reveal some mysterious new IP that it had been working on for quite some time. Then again, maybe Lionhead's idea of a "big presentation" is Peter Molyneux playing beer pong on stage. The possibilities are endless, really, but we do know one thing: all will be known come Monday at 10:30 a.m. PST.

[Via Eurogamer]

Beyond Achievements for love making and nut shots (and many other items and quests), Lionhead's upcoming DLC for Fable 2, "See the Future," will also offer up more dog breeds. IGN has images of a hound, husky and dalmation. Lionhead's Mark Hill says the breed changes are mostly aesthetic, but some "may become slightly better fighters."

"See the Future" should be available sometime next month for 560 ($7). Now, if we could only see the future enough to provide an exact release date.

Bringing the game's grand total up to 1350 points, the full list of Achievements for Fable 2's upcoming DLC, "See the Future," has been unveiled by the Lionhead Community blog. Since it includes such classy Achievements as "The Paramour: Make love 25 times" and "The Nutcracker: Score 25 groin shots," we're quite certain those venturing back into Albion will find no shortage of buffoonery to engage in.

We're still not quite certain what day in the next month the second add-on will arrive, but we do know it's fetching 560 ($7). Considering we're rounding the end of April any minute now, though, we imagine Fable 2 developer Lionhead Studios will see fit to announce a release date soon. Now that's seeing the future.

[Thanks, Aaron!]

The queer sexual discrimination case of Jamie Durrant against Microsoft has ended in an "amicable resolution." PinkNews reports a settlement has been reached by the two parties, with no financial figures revealed and Durrant no longer continuing his employment at Lionhead Studios as part of the agreement. Durrant had been "sick" and on half-pay since last August from the Molyneux studio due to "anxiety and depression."

When contacted for comment about the conclusion of the case, Durrant responded, "I really can't comment on it apart to say that it was resolved amicably."

Despite the Durrant issue and an alleged incident involving a lesbian being banned from Xbox Live, Microsoft appears to still have the support of GLBT political organizations. The Human Rights Campaign's Corporate Equality Index gave the company the highest score possible in its latest review. So far, these discrimination incidents appear to be tempests in a teapot.

[Via GamePolitics]

Peter Molyneux finally discussed details on the next Fable 2 expansion in an interview with IGN. Called "See the Future," this new expansion will arrive in Spring, bringing in some new gameplay mechanics and challenges. It'll also be important to the overall narrative as Molyneux informs that See the Future will "tie up a few loose threads" between Fable II and Fable I. There's more about Theresa, too, as well as "a clue about the future of the Fable story."

Fable isn't all that Molyneux's team is working on, though. Speaking to Kotaku, he talks about the future of Lionhead and its non-Fable developments. "In fact we've been working on, working incredibly hard, on something else [than Fable]," Molyneux divulged. He wouldn't say what it was nor would he say when exactly the studio would be ready to show it off, but he reckons E3 would be a good time for all that.

Source 1: IGN
Source 2: Kotaku

Jamie Durrant has been working for Lionhead Studios, stomping ground of Peter Molyneux and developer of the Fable franchise, for 11 years. In his time, he's worked on the Black & White series as well as both of the Fable games. As of last August though, Mr. Durrant has been out of work "sick" on half-pay, claiming sexual discrimination on the part of Microsoft. "I have been signed off sick since August with anxiety and depression," Durrant told us this morning.

The Surrey, UK resident is suing his employer, Microsoft (owner of Lionhead Studios), for £45,000/$66,000, money which will make up for "lost earnings and injury to feelings," according to the report on Telegraph.co.uk. A variety of names, laden with derogatory terms, were purportedly circulated in Durrant's tenure with the company as of late, referencing his sexual orientation: "'I'm Jim and I'm Gay," "Me and My Favourite Men," and "Ladies Are Bad," among others.

According to Durrant, when these abuses were reported to the Microsoft human resources department, the company did little to help him, apparently telling him they would circulate an email reminding employees of the company policy -- but they never followed through. When he inquired as to why it hadn't been sent a few weeks later, he was supposedly told that Microsoft would have to draft policy on the matter first. He told the Telegraph, "I was very surprised that Microsoft did not have any policies relating to this sexual orientation harassment." Less than a month ago we found out that the Microsoft Xbox Live team also have little-to-no policy written regarding sexual orientation discrimination.

When asked for more information, both Microsoft and Mr. Durrant have said they cannot comment on the still pending litigation. We'll have to wait until the London South Employment Tribunal hears his case "later this year" for more info.