Microsoft announced the coming of Fable 3 during their conference at Gamescom this morning, where Peter Molyneux left people with the cryptic statement, “I think there’s something fundamentally wrong with RPGs like Fable… It’s a mechanic that’s been there since the eighties. I’m going to take that foundation stone and throw it away.”

In Fable 3, players will be the ruler of the world Albion as either the son or daughter of the hero from Fable II. The first part of the game involves making alliances and starting a revolution to overthrow the current king. In order to do this, players will have make “revolution” promises that might include helping the poor or lowering taxes. When all is said and done the player will have to make a choice how and if they want to keep the promises they have made to the people.

Fable III is expected to release later in 2010.

Also announced today was Fable Episodic. Microsoft will be splitting Fable II into 5 episodes and releasing them on Xbox Live Marketplace on September 29, 2009. The first will be free, however, no pricing was revealed about the four later episodes. The episodes will also be compatible with Fable 2 DLC packs Knothole Island and See the Future.