In a surprising move, Microsoft Game Studios and Lionhead have announced that the long-awaited PC version of Fable III will be available on Microsoft’s Games For Windows Live platform and Valve’s Steam platform. Pre-orders are scheduled to go up today, with GFW Live purchasers getting Fable: The Lost Chapters for free. Steam owners will receive the Rebel’s Weapon & Tattoo Pack, an exclusive collection of four weapons and five tattoos to customize their hero.
All current Fable III content on Xbox 360, like the Traitor’s Keep addon, will be available on the PC version. In addition, a new “hardcore” mode and support for 3D monitors has been added. The game will launch on May 17, 2011 in North America.
This seems to be the first title from Microsoft Game Studios on any download service other than Games For Windows Live. Does this mean Microsoft is conceding the digital distribution race? Or perhaps Microsoft and Valve have made up, and Steam could be heading to the Xbox 360 as well?

