Peter Molyneux appeared at Microsoft's E3 presser to announce a new Fable. Fable: The Journey will make full use of the Xbox 360's controller-free Kinect technology.

The demo for Journey showed a girl trying to escape a smoke monster on a stagecoach. The player controlled the horse with their hands via Kinect. The player then hopped off the coach and fought a few monsters on foot. Casting spells, and melee attacks, are also accomplished with hand gestures.

The gameplay all took place in first-person perspective. It seems like the experience is on-rails, too. The person demoing the footage didn't appear to be controlling the direction the character was walking at all. With that in mind, it seems like you'd only want the game if you had Kinect.

Journey will be released in 2012. The trailer and demo shown at the Microsoft presser are both below.