In addition to announcing Fable III, Lionhead boss Peter Molyneux has also revealed that Fable II is to be re-released as an episodic, pay-per-episode title.
It'll launch on September 29, with the game broken up into five chapters. The first chapter will be free, and when you get to the end of it, you'll be given the option to pay to download the next chapter.
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Molyneux says each chapter has a "natural break", so you won't get any sudden interruptions in your experience. No word on pricing as of yet, but we do know it'll be compatible with Fable II's DLC, Knothole Island and See the Future.