What appeared to be a glitch earlier this morning is now intentional: Fable III is completely free for Xbox Live Gold subscribers (probably to promote the original game's HD re-release later this year). Just go to the title in the On Demand section of the Marketplace and you'll find it there for download. The game is 5.61 GB.
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I never played any of the Fable games, but I heard the third one wasn't any good. Thoughts?