Microsoft has announced that the first pack of downloadable content for Fable II will be available on December 12th. It introduces a new island called "Knothole," which contains new quests and dungeons, as well was various items and character customization effects. An interesting article about Fable II's morality system is up at Valuable Games. The author says, "In many ways the game's moral dimension feels more like a feature, similar to the implementation of new shaders or an upgraded AI system. It is not that the morality system is tacked on; it is a central part of the gameplay. But, compared to the enormous amount of work that must have gone into designing the world (i.e. creating artwork, a coherent narrative and the world itself), there seems to be far less time spent on developing (minor) emergent moral choices and major moral dilemmas in the game's overall narrative." GameSetWatch has a related story about how the game approached storytelling.
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