Microsoft and developer Lionhead studios have confirmed Fable III, which will be the sequel to the highly successful Fable II. Fable III is on schedule to arrive in time for the 2010 holiday season.

In addition, Microsoft and Lionhead will be releasing new Game Episode content for Fable II as part of the Game On Demand delivery download functionality that Microsoft added with the most recent update. Basically, the content will be delivered in chapters as downloads which deliver the entire Fable II experience one part at a time.

The decision to bring Fable II to Game On Demand and deliver it a chapter at a time is an interesting concept, as it gives buyers a chance to have a thorough in-depth experience of Fable II for those who maybe were on the fence about buying Fable II, or have maybe never tried this type of RTS title before.