Lionhead's Peter Molyneux has spoken to Gaming Union about Fable: The Journey, and admitted during the interview that Kinect does come with a few problems - mostly navigating through worlds. "As an input device it has some real problems. Without a thumb stick, navigation is a real problem. You haven't got any buttons, so ordering the player to do something can be somewhat of a problem."
Of course, Fable: The Journey is a Kinect-game, which means Peter also has good things to say about it. "But what Kinect does have is a great sense of freedom and emotion. So that's what we've tried to do with Fable: The Journey."
The game is supposed to be out next year and is not an on-rails shooter, even if the presentation of it during Microsoft's E3 media briefing sure made it look like one. In fact, according to Molyneux the navigation showed during the demo doesn't actually exist in the actual game.
"Why would we ever make a Fable game that was on-rails? Fable is all about freedom. Not only freedom to go where you like, it's freedom to be who you like. Fable: The Journey definitely, 100% has to encompass that."