Peter Molyneux, of development studio Lionhead has announced that a third chapter in the Fable story is in the works during a speech as this year's GamesCom event in Germany.

Molyneux, well known for his ability to get a little too enthusiastic when describing the undoubtedly excellent worlds his team create had this to say regarding Fable 3:

“The third child is always the problem child. The third game of any series tends to be a bit of a lull. We want people to expect the unexpected.

“Fable III will be new, fresh and different. I think there’s something fundamentally wrong with RPGs like Fable. The mechanics have been around since the ‘80s. I’m going to take that foundation and throw it away.”

From the snippets of information available, the new game will see the player overthrow the current rulers of Albion and take their place at the head of the Kingdom. This will lead to the player being able to choose how he rules, as a benevolent King or tyrannical sovereign.

Fable 3 is due in the latter half of 2010.

Alongside the announcement of the latest chapter, Molyneux also confirmed that Microsoft is to experiment with the current Fable 2, re-releasing it via the Live Marketplace in episodes.

The thinking behind this is that the majority of gamers don't actually complete the games they buy, so being able to just purchase the stories they are interested in will give a new lease of life to the game, and save consumers cash.

Thanks go to MCV.