Fable: The Journey has been revealed, and while Peter Molyneux calls it an immersive Fable experience, it looks pretty much like a rail shooter. The demo shown at the E3 press conference revealed a guy pulling off some pretty complex hand gestures to smack around some hobs.
From the looks of it, it's House of the Dead but with goblin-faced hobs and magic spells. You can wave your hands to slap around enemies, rotate them to power up spells, and thrust them to shoot at stuff. It's pretty much a thoroughbred Kinect game. Not quite the fusion of controll and Kinect controls that Molyneux once promised.
Fable and Kinect. Two mediocre flavors, together at last!