Lionhead's Peter Molyneux apparently changed his mind about including Kinect functionality in his upcoming RPG.
Fable 3's support for Kinect has been a lynchpin holding up Microsoft's claim that the new control system will have appeal for hardcore gamers. However, it looks like Microsoft's going to have to find a different mainstream game to use as a vehicle for the technology: Lionhead's Peter Molyneux has announced Fable 3 won't actually work with Kinect when it comes out.
Speaking on the Engadget Show, Molyneux revealed that Fable 3 won't be shipping with Kinect functionality. Molyneux declined to give a reason for the game's lack of Kinect support, but he later revealed to Joystiq that whatever was going to be put in the game just wasn't good enough to be included yet.
Molyneux did, however, explain that Kinect content might be included later on down the line, presumably as some post-launch DLC. When Joystiq contacted Microsoft PR about the statements, it turns out that Microsoft itself wasn't aware of Molyneux's specific comments but, "it reaffirmed that the legendary designer is a strong proponent of Kinect, and has spoken of its use in Fable 3 before, but also told us that [Microsoft PR] can't discuss what role the hardware will play in the game 'at this time.'"