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At Microsoft’s X10 event, Peter Molyneux revealed that Fable III will feature three major changes from previous entries to the series: in-game touching, your weapon morphing along with your character, and the challenges of ruling a kingdom.

– In-game touching refers to your character’s physical interactions with NPCs. Context-sensitive triggers will allow your character to guide others by the hand, or grapple and subdue a hostile person outside of combat; this mechanic will also have a role in co-op gameplay.

– Weapon morphing is the system by which your weapons change depending on how they’re used. Molyneux gave two specific examples: weapons grow in size, length, or sharpness if you fight often, or fight for long periods of time; weapons used to kill innocents or evil people will drip with blood or glow accordingly.

– Ruling a kingdom is intended to be a complex affair, coming into play about halfway into the game. Details are sketchy here, but the basic idea is after dethroning the bad guy, you’ll need to uphold promises you’ve made along the way. Players will be able to pass laws, which in turn “change the fabric of the kingdom.”

– Molyneux also said Fable III will have a revised HUD with few, if any, icons or health bars, and that experience points will be based on the number of followers you have.

Source: Kotaku