Sure, Peter Molyneux's studio is developing Milo, the proof-of-concept Microsoft used to unveil Project Natal at E3. But he's clear he "never said" Fable III wouldn't incorporate Natal. Then he jokes about being eliminated for discussing it.
In an interview at the PICNIC Conference in the Netherlands last week, Molyneux's interviewer basically stipulates that there will be no Natal support in Fable III. Rather than move on to the rest of the question, Molyneux goes out of his way to correct the record, and then some.
Here's a transcript of Molyneux's relevant remarks, beginning with his questioner saying Fable III will not incorporate Natal.
I never said that.
I am going to say it's going to use a controller. But I've never said it's not going to use Natal.
And obviously what would probably happen if I started talking about this is you would see a little red dot appear moving on my forehead. And then as I would start to speak the words then there would be a shot, gunfire, and I would be assassinated. Quite clearly it is that sensitive.
But let me give this to you absolutely straight. I have not said that we're not going to have Natal in Fable III. All I have really said is it is a controller experience. That doesn't mean there isn't going to be Natal.
Do you really think ... knowing me ... I wouldn't want to use something like Natal? I mean that's just mad, man.
The entire video is here — the beginning narrative is in Dutch but the interview is in English. The relevant Natal comments begin about 7:00.
Big thanks to reader Rowan for the tip.
Interview Peter Molyneux [PICNIC 2009] [Game Kings]