Also working on a secretive title.
Speaking to GameTrailers, Lionhead boss Peter Molyneux has revealed that there are plans to extend the Fable franchise way beyond the second game.
"We've got plans for Fable 3, 4 and 5 actually. It's a big story arc and you can see that if you play Fable 2 you'll recognise things from Fable 1," said Molyneux.
However, Lionhead's time won't be solely devoted to the Fable franchise, with Molyneux confirming that another game is currently in development at the UK-based Microsoft studio.
"There is another project at Lionhead that we've been working on for quite some time," he said. "It's kind of the result of an experiment that went incredibly well and we thought 'this has got to be a game'."
Unfortunately Molyneux was unable to offer any info on the game, but did say that he wants his next title to be a challenge.