You may or may not know this, but Peter Molyneux has something of a silver tongue. Having witnessed its power at GDC when he revealed "the dog," we weren't sure what to expect at the E3 Fable 2 presentation. Of course, Peter employed that same silver tongue to describe the original Fable, which, while being a good game in its own right, wasn't exactly what he promised. So, when he told us that Fable 2's combat is controlled with one button, we were a bit skeptical.

Loinhead has a new interview up with Dene Carter, Fable 2's creative director, in which he answers some of the hard-hitting questions on the minds of Fable fans. Questions like:

"So does that mean nudity?"
"Sorry?"
"Nudity?"
"Oooh, ah, that's a very good question. Well if you remove all your clothes your hero will, again, be dressed in underwear. Even the female heroes."

Thankfully, they go on to cover some new ground that hadn't been covered in the previous Molyneux interview, namely how the game is accessible to all players and skill levels, how the quest system has been cleared up and simplified, and how big the game world is. They've decided to make the game as simple as possible by eliminating things like contextual menus, and it isn't aimed at hardcore gamers.

When asked about the dog, they said the model will be changing to a more Brotherhood of the Wolf model. before, they'd been looking at Labyrinth and other Jim Henson-based models before moving on. What's ironic is the Jim Henson's Creature Shop created and designed the wolf in Brotherhood of the Wolf, but c'mon ... we're just being picky.

Check out the video interview after the jump, just prepare yourself for no nudity.

Ladies and gentleman, boys and girls, Fable fans of all ages, the first Lionhead Video Diary is now available on Xbox Live Marketplace. You can also grab it from Lionhead's website. Of course, if you're not too picky about fancy res-molutions, you can watch it right here in this post. If you kept track of Fable 2 during GDC, then you won't find too much new information here, although you will get a few cursory glances at the game in development and a high resolution fly-through of some of the environments. Give it a watch and tell us what you think.

Note to Lionhead: let's put more gameplay into the next video diary, hmm?

Super Lionhead Studios fansite Loinhead scored an exclusive interview with the creative mastermind behind Fable 2 Peter Molyneux. And in the interview Molyneux talks a little bit about his past failures (Black and White 2), in-game combat, and hints at one of Fable 2's next big announcements ... death. Molyneux doesn't give any specifics to how death will be incorporated into Fable 2, but goes on to say that in other games when you die "you go back in time twenty minutes to do the same thing over again. That's fine if I'm playing a platformer, not so fine if you're doing an RPG game". So, traditional ways of dealing with death will not be good enough for Fable 2. But we've already known that Lionhead doesn't plan on taking the traditional path with the sequel (dog anyone?).

Check out more of Molyneux's candid discussion in Loinhead's complete video interview posted after the break.

A new community update for Fable 2 has been deployed, with a handful of new concept sketches to go with it. The art is mostly some different character designs, but it also includes the super spooky image you see above. It makes us think of vampires and werewolves and people with thick accents. The update doesn't contain much in the way of new information. Basically, everything is going according to plan (designers are designing, planners are planning, etc.). The update concludes by letting us know that the Lionhead Video Diary is still on the way. We can't wait. Hit the "read" link for the update.

[Via Xboxygen]

Lionhead Studios, the geniuses behind Fable 2, just released the March edition of their online paper, the Lionhead Times. In this month's edition they talk about the big GDC announcement, what the development team thought, and a recap of everyone's reactions to it. Let's just say Peter Molyneux and that little dog put a lot of stress on the team, but everyone survived. Also, more interesting, is that Lionhead promises to release a monthly(ish) video blog looking at Fable 2's development process, current events, and whatever the heck else they want called the Lionhead Video Diary. They hope to be putting out the first episode in the next few weeks both online and on the XBLM, so watch for it. Make the jump and get your very own copy of the Lionhead Times.

We previously covered Peter Molyneux's Fable 2 talk at GDC, and now the most-watched video at GameTrailers shows off Fable 2's dog, letting us take a closer look for tonight's video. Molyneux stresses not to scrutinize the graphics and that only the dog is worth looking at in the demo's current state. Overlooking the work left to be done, the dog seems to be well animated and deliver a lot of emotion; hopefully this companion will add more depth to the game.

See the dog demo after the break.

Sure, we've heard plenty about Fable 2's new dog -- we talk about it at length in the latest Fancast -- but only those of us lucky enough to have been at GDC have actually seen it (outside of a few blurry shots that is). Luckily for us, our friends from GayGamer.net were sitting right next to us at the presentation and bagged a handful of decent shots of the dog in action. They also managed to snap a shot of Bowerstone, the game's central city. As you gaze at all the buildings and shops in the photo, remember that you can buy every single piece of property you see.

Sort of makes the wait for Fable 2 seem even longer doesn't it?

As we slowly recover from GDC jet-lag, we thought it would be best to post some of the other features that Peter Molyneux confirmed for Fable 2. After all, a dog can't be the only new feature in Fable 2. There really is quite a bit to consider, so we'll just dole out the info in bite sized bits via a handy bulleted list. Everyone likes lists.

• Players can pick a male or female hero
• Players can choose to have protected or unprotected sex (and yes, there are STDs)
• Female heroes can get pregnant
• Players can have children
• The world responds to your "hero-ness"
• Two new character morphs (besides Good/Evil): cruelty/kindness and wealth/poverty
• Own every single piece of property
• Players can become king

Let's look at these more closely.

Our 2007 Game Developers Conference has come to an end, we've had a fun ride, but there is still more to see. And the nice folks over at GameTrailers have their GDC section quarantined off and ready to showcase some of the best Xbox 360 media. You can sit back and watch a new Portal video, maybe some Mercenaries 2, a Fable 2 dog demo, or The Darkness. It's every video they have to offer from GDC that is Xbox 360 related. And we definitely recommend watching the Fable 2 dog demo, because it just might make you think differently about this new "revolutionary" feature. GDC may be over, but your video watching has just begun.

Xboxygen posted a few new concept art images from Fable 2, which include that mysterious (yet revolutionary) dog. We now know why Lionhead Studios didn't release these images until after the big announcement, otherwise they'd have spilled the beans on the whole puppy thing and left people wondering "what the heck is that furry thing doing in my Fable 2 artwork?" So, go ahead and take a look, digest the recent Fable 2 news, pet your dog, and come back with a refreshed face and an optimistic outlook on life.

There's a reason Peter Molyneux is smiling in this picture. He was nervous to reveal the "revolutionary" new feature in Fable 2. Several people on his own team told him not to do it. In fairness, it's definitely a risky feature. No one in their right mind would call it revolutionary at first glance. Yes, the intertubes were right: Fable 2's secret new feature is a dog. That's it. So, why is Peter smiling? He's smiling because he just convinced a room full of jaded journalists that a dog is revolutionary. Yup, it's a dog, but believe it or not, you will love it.

Though his calm and and exceedingly eloquent manner might suggest a more languid pace, Peter Molyneux wastes little time when raising expectations -- and he knows it. "I'm going to get into trouble for saying this," says the British game designer before launching into his Fable 2 GDC presentation. "If we don't think it's going to be a landmark game, it's going to be bloody pointless to make it." Several moments later, I find myself thinking about what a horribly cruel man he is.

And that's a good thing. You see, one of Fable 2's key features is, well, a dog. Not some sort of magical beast or a disturbing, anthropomorphic St. Bernard. A tail-wagging, ball-chasing, honest-to-goodness dog. Fable's gesture system makes a return here, with petting and cries of scorn eliciting different reactions from the dog. At one point, Peter's on-screen character screams and waves his hands menacingly at the dog, frightening it into a quivering pile of fur. It seems mean, but the press members in the room chuckle appreciatively. Those monsters.

The French folks over at Xboygen posted pictures of a new "character" in Fable 2. It's a dog! Your own personal dog to play with, train, and love while exploring the lush green world that Fable offers. In one picture, Peter Molyneux is pointing to our furry little companion and probably explaining how to get your dog to attack on command ... or so that's what we want to believe. And of course these screen grabs beg the question to whether or not this is the big Fable 2 announcement or just one interesting addition to the game. Only time will tell, but we'll find out soon as our very own Richard Mitchell will be getting the complete dish on Fable 2 during his coverage of GDC: 07. Stay tuned.

GamePro recently had an interview with Peter Molyneux, president of Lionhead Studios, about Fable 2 wherein he used jujitsu to dodge some hard hitting questions. That being said, what he didn't say was definitely a lot. When asked about the Xbox 360's untapped potential, he brought up Xbox Live and its applications in a game like Fable 2, saying that four people going through a quest together in a self-contained environment as opposed to an open ended one hasn't been exploited yet. Unfortunately, he couldn't say explicitly how that pertains to Fable 2 and its online capabilities, if any. Still, it's interesting to hear how fascinated he is with the concept, and we can only imagine how it'd play out if it were true. Fable 2 co-op, eh? How do you like the sound ofthat?