During last night's Engadget Show, Lionhead boss Peter Molyneux revealed that, despite earlier claims, Kinect functionality wouldn't ship with Fable 3 this October. We got a chance to speak with Molyneux after the show and asked him to explain what happened. "We probably could've done some little side quest with Kinect, but I love Kinect so much and I love Fable so much that I think we needed to have some time to develop it," he said. Molyneux also noted that Lionhead has a team working on Kinect right now and, if he "were a betting man," Kinect would play some role in Fable "at some time, it's just not gonna be at launch."

Molyneux wasn't allowed to get too specific with regards to Kinect prototypes Lionhead was working on for inclusion in Fable 3, but he did explain why they got scrapped. "I just said to myself 'Is this what people would expect Kinect to be in something like Fable?' And the answer, quite frankly, was 'no.' We're still working on that stuff, we're still adding stuff to it, and, as I said, I think the future for Kinect and Fable is probably bright."

Stay tuned for our full interview with Molyneux later today.