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[Update 12:20] We've added the announcement trailer below.

[Original Story] Lionhead's Peter Molyneux showed up at Microsoft's press briefing today to announce Fable: The Journey. The Kinect-exclusive game takes place after the age of Heroes (in the Fable sense). After a brief trailer, a gameplay demo showed the on-stage demonstrator controlling the reigns of a horse, using a melee attack, and casting magic with gesture controls.

The conference is currently underway, Shacknews will update this post as more information is made available.