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At the very beginning of Lionhead's latest Fable 2 Video Diary 6, Mr. Peter Molyneux can be seen sitting at his desk with pen and paper in hand, circling boxing-in the word "October" on a piece of paper. We actually spotted Molyneux's mysterious October hint yesterday when we posted the video diary, but now we're even more suspicious about its meaning after Lionhead refused to comment on the video or the October date when Eurogamer asked for more details. An official October Fable 2 release date? An elaborate trick by the Lionhead crew? Or does Molyneux simply utilize the stress relieving technique of writing down one's favorite month and boxing it in with a pen? You be the judge.

Speaking to gamesindustry.biz, Peter Molyneux had some strong words for the ongoing games as art debate. When asked whether or not he considered games as art, Molyneux replied simply, "Of course they are." Elaborating on his point, Molyneux noted, "If art is described as something which promotes a reaction in you and lets you glimpse something that's more than reality - then yes, of course they're an art form." Naturally, one would expect a game designer to espouse such an opinion, but Molyneux does so with no doubt at all. When asked about games based on movies that sell more copies than more artistic games, Molyneux cites it as an example of an alarming trend in game design. Molyneux says that games are starting to lose their "Wow!" and that the industry needs to regain its sense of wonder. Of course, Molyneux hopes Fable 2 will accomplish this, noting that it isn't simply a big sequel with more of the same. "The point is," said Molyneux, "we can still do things that amaze people, and that's a fantastic position to be in." Indeed.

Super Lionhead Studios fansite Loinhead scored an exclusive interview with the creative mastermind behind Fable 2 Peter Molyneux. And in the interview Molyneux talks a little bit about his past failures (Black and White 2), in-game combat, and hints at one of Fable 2's next big announcements ... death. Molyneux doesn't give any specifics to how death will be incorporated into Fable 2, but goes on to say that in other games when you die "you go back in time twenty minutes to do the same thing over again. That's fine if I'm playing a platformer, not so fine if you're doing an RPG game". So, traditional ways of dealing with death will not be good enough for Fable 2. But we've already known that Lionhead doesn't plan on taking the traditional path with the sequel (dog anyone?).

Check out more of Molyneux's candid discussion in Loinhead's complete video interview posted after the break.

As we slowly recover from GDC jet-lag, we thought it would be best to post some of the other features that Peter Molyneux confirmed for Fable 2. After all, a dog can't be the only new feature in Fable 2. There really is quite a bit to consider, so we'll just dole out the info in bite sized bits via a handy bulleted list. Everyone likes lists.

• Players can pick a male or female hero
• Players can choose to have protected or unprotected sex (and yes, there are STDs)
• Female heroes can get pregnant
• Players can have children
• The world responds to your "hero-ness"
• Two new character morphs (besides Good/Evil): cruelty/kindness and wealth/poverty
• Own every single piece of property
• Players can become king

Let's look at these more closely.

There's a reason Peter Molyneux is smiling in this picture. He was nervous to reveal the "revolutionary" new feature in Fable 2. Several people on his own team told him not to do it. In fairness, it's definitely a risky feature. No one in their right mind would call it revolutionary at first glance. Yes, the intertubes were right: Fable 2's secret new feature is a dog. That's it. So, why is Peter smiling? He's smiling because he just convinced a room full of jaded journalists that a dog is revolutionary. Yup, it's a dog, but believe it or not, you will love it.

The Lionhead Times has be updated with a few bits of info regarding Fable 2. Most of the info is just general development stuff, but there are a few interesting things to point out. For instance, the story of Fable 2 takes place 500 years after the events of Fable and The Lost Chapters, giving the game a richer history from which to build the story. The story is also planned to be longer than the original, which is definitely good news. Somewhat more cryptic, it's also revealed that the story could take a turn that will "shock" players.

Another little tidbit, the Fable 2 team now has to make "milestone" builds of the game in order to showcase the game's progress to the suits at Microsoft. The upshot of this is that we should get some insight on the game's progress as well. Fable 2 is one of the 360's heavy hitters so, rest assured that we'll keep you posted.