Peter Molyneaux has claimed to have heard the cries for a better co-op system in Fable 3 but there may be a cost.
The co-op system in Fable 2 was fairly lackluster. A second player could join your game over a System Link or, with a patch, over Xbox Live, but they were relegated to mere henchmen status. While playing together, you could split up loot earned but the henchmen couldn't accept quests or gain experience. You could conceivably port any gold you earned as a henchmen back to your hero on another machine with memory card. For Fable 3, lead designer Peter Molyneaux promises that you'll be able to both play with your hero, your dog and all your equipment in co-op mode.
"I heard you all about co-op," Molyneaux told 1up. "You want to have your own hero come into the world. Okay, fine, you can have that definitely."
"When you come into my world, you come in as your hero, with your dog, with all your unique weapons, self-crafted weapons," Molyneaux. "I heard you - you don't wanna be tied to my camera, you wanna go off and do your own thing in my world. Fine, fair enough."
That doesn't mean that everything will be all hunky-dory, and there may be some consequences for playing in co-op mode. "It means careful who you invite in, 'cause they can screw the whole thing up, man!" Molyneaux warned.
It's true, your friend may start blowing up villagers and your golden butterflies good guy will suddenly start sprouting horns. He went on:
You can be customizing their house or doing their job, or buying something in a shop, while I'm out questing. You can do it. If you want to come out, in my co-op world and if we really get on well together, we should be able to get married. [Fable 3] is the first co-op game in which you can truly get married.
Yes, you can use touch with your coop partner. Yes, you can walk down the street hand-in-hand. Yes, you can drag your co-op partner to your dungeon and see what happens. Absolutely.
Molyneaux has made some big promises in the past, but it will be interesting to see more co-op features in a game like Fable.