Fable III Not an RPG?

Yes, you heard correctly.  Fable III may not even really be an RPG.  Peter Molyneux said while speaking at Microsoft's X10 event in San Fransisco that "I'm not sure I even call Fable an RPG anymore.  Certainly not a 1990's RPG, for sure."  While this is hugely disappointing for many hardcore Fable fans, Molyneux went on to describe a bit more detail of the upcoming game.  "In a way, you could look at it and say it's like an action adventure.  There's a lot of drama, there's a lot of story, there's a lot of emotion in there - but with leveling up.  I love that leveling up," he added that being given a pre-planned character and told 'this is you no matter what' is not to his liking.  Not to mine either and I am sure not to many others.

It was also revealed that the game has changed in a few other ways as well.  There's no HUD, when the player is in danger the coloring of the screen will change, similar to Mass Effect 2 and Modern Warfare 2.  The expression system has also been replaced with a touch mechanic. This allows players to interact with other characters by holding hands, hugging, shaking, etc.  No word on whether this 'touch mechanic' will require Project Natal. 

Fable III has been confirmed for a Holiday 2010 release date.