After finishing the game, I have been forced to edit my review.
I was a huge fan of Fable 2, I loved the interaction with the people, the cities, and how you could make the game your own. Fable 3 is a good successor to the Fable storyline. The main plot is engaging and the wit/humor found within keeps you laughing. The game does a good job of mixing up the action, bringing you to different places and having you accomplish varying tasks throughout.
However, Fable 3 is essentially a cut down version of Fable 2. While removing the menus was generally a good thing, the Fable 3 team went too far. I list the Pros/ Cons here, but my final verdict is that unless you know what is coming at the end of the game, the end decision will ruin the endgame (the part after the plot is done) almost guaranteed. I won't give away anything, but I strongly recommend you either be willing to play through twice, or rent the game. I was extremely angry at the Fable team after the plot was over. Forcefully shutting my xbox off, controller on the ground, angry.
Pros-
-No Menus
When I say no menus, I mean none what so ever, instead you have your sanctuary. An area that you can instantly teleport to whenever you want. Inside is your armory, dressing room, trophy room etc. All your items are displayed on mannequins and on the wall so you can pick and choose without going through layers and layers of menus. Even saving has an area in your sanctuary (not very obvious in the beginning). It sounds like it would be weird, but it really adds to the immersion of the game and works very well. A big map does the traveling when you can select areas for your indicator trail to go (same as fable 2) or fast travel to the areas that you've already visited. You can also zoom in on cities that you've visited and see more information about them. The entire idea may sound weird, but it really adds to the continuity of the game.
-Alive weapons
When I heard in the trailer that the weapons were 'alive' and would change as we used them I thought it would be neat, but weapons probably wouldn't be that different. Boy was I wrong. A friend came into my world, same levels as I was, and ALL of our weapons were totally different. I'm not saying the designs or colors, but EVERYTHING. Shape, size, color, symbols/color of symbol. Everything. This provides a very cool customization of weapons.
-World is much bigger
And I'm not kidding, after eight or nine hours of Fable 2 you basically had explored everything. I've played at least that much and have only seen five or six of the at least twenty or so villages/areas. It's huge.
-No allocation of skill points
Unlike Fable 2, where you had to choose areas to put your different skill points into, Fable 3 has a much more streamlined process. You get (basically xp, but I forget what they are called) which are earned through kills, quests, and talking to villages. Inside the sanctuary you can visit this area called 'Road to the Kingdom' or something along those lines. Inside, there is a figurative path on how close you are to ruling Albion, with chests and gates along the way. Every little way in the game, a gate is opened allowing you access to more chests, which can be opened with a requisite amount of 'xp'.
-Better Graphics
Title basically speaks for itself. The graphics are more polished although I have encountered some stuttering.
-More
Very generally, more spells, more swords, more people, and more flourishes. You can weave spells together to create amazing effects. (fire and ice robert frost style anyone?
-Amazing Variety
I have YET to find myself doing something to the point where I am bored of it. It maintains continuity throughout but manages to stay away from just 'bashing your way through'. You never know what you'll have to do next, from interacting with villagers to make them like you, romancing a married woman to get her to divorce her husband that doesn't want her, to playing as the hero inside a dungeons and dragons game.
-Combat
In Fable 2, you could pretty much bash your way through anything without having to worry about finesse. That's gone... In just about every battle I have been pushed to roll and block in order to keep the enemies from overpowering me. The enemies are various, and they always have one or two strong guys that really make you feel pressured while fighting.
-More realistic villagers
In Fable 2, if you had enough renown basically everyone loved you. Its a little harder in Fable 3. If you want that girl/guy as your significant other you need to work for it a bit more.
-Pro/Con (can't tell)
You no longer get money when the game is shut off like Fable 2. This is good, and bad. It makes it so it is much harder to get gold, but also stops the Fable 2 money cheat.
-Cons
-Graphics stuttering
The graphics have a tendency to lag or stutter during the game. This can ruin your 'lute hero' chain, and is just annoying. You can, however, download the game to your xbox hard drive which will eliminate the stuttering.
-Lack of interactivity
When conversing with a villager, you have two emotes to choose from. A 'good' emote and an 'evil' emote. If you want to shake hands with someone, but your only good option is to dance then your stuck with dancing with them. This is very annoying, and makes me miss the emote wheel from Fable 2. The world of Fable 3 also feels shallower than the world of Fable 2. This could be because I didn't really try to get to know the world until after I became king and the 'big choice' which impacts the game quite a bit.
-The choice
After you become king, you are faced with a giant choice. Unless you specifically prepare for it, I almost guarantee it will ruin your game/day. I was NOT happy.
The first part of the game was excellent, wit and humor was hilarious. Plot was twisting with many old characters brought back (reaver, therese). The end choice literally ruined a lot of it for me though.
***SEMI SPOILER***
If you don't want the end choice to make you very, very angry save a lot of gold. When I say a lot, I mean a lot. (~10 million). It is, however, easier to make gold. In about 20 minutes you can have around 100,000 which then can be invested into property. Keep investing until you get a lot of income per income cycle, then wait till you have the requisite amount of gold