Gaming maestro Peter Molyneux has officially confirmed that the next version of Fable, Fable 3, for the Xbox 360 will be Project Natal enabled.

"Fable 3 will have Natal support. Is that an announcement? #molyneux", Nicholas Lovell, founder of Gamesbrief, non-exec at nDreams, consultant to the game industry on strategy, finance and online sales tweeted after hearing Molyneux at a BAFTA lecture in London.

"Providing the audience with an insight into video games of the future, Molyneux demonstrated his latest project called Milo which utilises Microsoft's Natal technology that relies on voice, facial and motion recognition". reports BAFTA.

Molyneux also confirmed that the third instalment of Fable, Fable 3, will have in game transactions that allow you to buy extra gear for real cash to enhance your gaming character.

Project Natal, first announced at E3 in June in the US, is Microsoft's play at making the gamer the controller. It will monitor movements and then recreate those on screen. 

So far all the major games publishers are on board. Microsoft hasn't given an official launch date for the new technology, however have suggested a spring 2010 launch date.