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Peter Molyneux, Lionhead head honcho, recently told gamesindustry.biz that Fable II could possibly become a digital download on the Xbox 360. He said that it would be “a great thing for [Lionhead] to work on,” but refused to toss out any specifics as to how it could go down. When pressured for more information, he said if he talked about it more he “would be killed to death.”

If Fable II were released digitally before the Xbox 720, it would be the first full Xbox 360 game offered on Xbox Live Marketplace. Currently Microsoft only offers original Xbox titles on the Xbox Originals tab for download. Molyneux said that the original Fable, which is one of the four titles being offered on the Xbox Originals service, has performed “really, really well” and cited that it “was one of the highest selling, if not the highest selling [titles].”

Molyneux is somewhat notorious for letting the cat out of the bag, but this is a pretty big cat. If Microsoft begins to offer full, current games, it will take one of the few advantages that Sony’s PSN has over Xbox Live. In many ways, full downloads seem like a natural progression for the Marketplace. We’ll have to wait and see how this unfolds.

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