Source: An interview with Lionhead Studios head Peter Molyneux by Dutch site GameKings.

　　What we heard: At its E3 2009 press briefing, Microsoft revealed that Lionhead was working on Milo, a simulation game that uses the motion--and emotion--sensing qualities of Project Natal. Two months later at GamesCom in Germany, Molyneux took the wraps off Fable III, another Xbox 360 exclusive from the Microsoft-owned, UK-based studio.

　　Given Molyneux's involvement with both Fable III and Natal, it stands to reason that the former might feature some connectivity with the latter. However, the GameKings interviewer expressed regret at having read that the game wouldn't be using Natal. The journalist said he felt it would be ideal for Fable III's gameplay, which casts players as a king passing judgment on subjects.

　　After joking about how talking about Natal projects could get him assassinated, Molyneux clarified things. "Let me get one thing straight. I have not said that we are not going to have Natal in Fable III." [Emphasis added.]

　　Then, motioning as though he were holding a 360 controller, Molyneux continued: "All I've really said is that it's a controller experience, but that doesn't mean there isn't going to be any Natal. Do you really think, knowing me, as maybe you do over the years, that I wouldn't want to use something like Natal?! I mean, that's just mad, man!"

　　The official story: Microsoft did not respond to requests for clarification as of press time.

　　Bogus or not bogus?: Probably not bogus. Microsoft would love to have a first-party game of Fable III's stature use Natal in order to spur sales when it launches next year. And, by his own account, Molyneux wants to use the technology.

　　However, it may be a while until the public learns anything concrete. Before being asked about Natal, Molyneux bragged about how much he hasn't said about Fable III. "I haven't even told you what we're doing on the gameplay side," boasted the veteran developer. "My trick with the press is to leave the most exciting thing for later. There's plenty of gameplay stuff coming."