At Microsoft’s E3 press event, Peter Molyneux showed off the Kinect-powered Fable: The Journey, which looked to be a rail shooter based in the Fable universe. In a video recorded by OXM, Molyneux explained the game’s poor showing.
"I made an horrendous mistake on the press demo on taking out the navigation allowing players to move," he definitively stated. "I'll state on record now that Fable: The Journey is definitely not on rails."
Molyneux even showed a wall signed by gaming journalists agreeing with his statements. Sadly, no, I did not get to sign his wall.

