It looks like Lionhead's new Fable: The Journey will be powered by the magic of the Unreal Engine 3, announced the studio this morning.
"In using the Unreal Engine with its excellent tools for crafting cinematic in-game experiences, it allows our developers to focus on the quality and uniqueness of 'Fable: The Journey,'" said Peter Molyneux.
"Already we are seeing a more beautiful, vivid and unique world full of dramatic moments and have crafted new, never seen before gameplay experiences."
Epic's VP Mark Rein also pitched in, praising Lionhead for their work on the Fable series and Kinect: "Lionhead truly impresses with their proficiency for Kinect, with intuitive and natrual feeling player interactions using voice and gesture controls in demonstrations we have seen firsthand.
"That gripping experience combined with stunning UE3 visuals truly make this a world-class union of imagination and technology.