At the X10 event in San Francisco, Microsoft announced that Fable III will be in time for Xmas shopping craze. Although we’re not sure of the exact date, you can rest assured that Fable will be there for you to spend your Xmas funds on, but there are a few novelties in the game as well, most notably lack of health and experience bars and the new way of leveling up and growing your character.

Strangely enough for an RPG, Fable III will see health represented by on-screen color effects, much like FPS games where edges will turn red and even black and white as your health goes down. Leveling up on the other hand will be represented by your weapons, and they will grow and change appearance accordingly. 

As for the experience, Molineux said how most people didn’t really understand it and how "Experience seemed 1990s, it seemed old school." He argues that getting experience for combat seemed wrong, and how doing other things in the world of Fable III should be just as important as fighting. In fact, the in-game character will grow in power depending on the number of followers he has in the world of Albion.

You can read more here and check out some screenshots here.