There has been hints and rumours. But nothing official. And now Peter Molyneux has put an end to it by revealing that Fable III won't support Kinect on "The Engadget Show Live!".
He did say that what Lionhead had already developed with Kinect in mind, may be made available as downloadable content at some point. Here are four new screens to go along with the good/bad news (depending on how you see things).