I suppose this shouldn't come as a shock, but rumors are now saying that Lionhead is currently working on Fable IV.
Peter Molyneux and company are said to be prepping the sequel for a 2013. The rumor comes from the latest issue of Official Xbox Magazine, which says the title will be a "proper, controller-based Fable." Lionhead's already announced Fable: The Journey, an all Kinect, all the time experience that's totally not on rails, guys.
Lionhead's consistently put out some pretty decent Fable experiences, so the idea of yet another one isn't the worst thing I could imagine. But I'm also a pretty big fan of developers trying new things, and Lionhead has been making Fable games since 2004. Maybe it's time to try something new… or how about a sequel to The Movies Black & White?
Rumor: Fable IV On The Way - To Release In 2013 [Loud Mouthed Gamers]