However, this isn't Molyneux getting all Nintendogs on gamers. The dog will serve a gameplay function, too. While Molyneux wouldn't say that the dog would replace the mini-map, a feature Molyneux hates, the dog will function similar to one in Fable 2. Your four-legged friend will act as a "Scout, Bloodhound, Guide, Solver, Highlighter et cetera" (via Michael Donahoe's live coverage of Molyneux's talk).

The dog is also combat aware, reacting differently to the weapons that foes have and the weapons that your hero equips. The pooch knows which threat to deal with in combat depending on whether or not you have a sword or a gun (yes, guns in Fable 2 -- the camera went to a slightly off-center over the shoulder came, when Molyneux raised the blunderbuss in this very early build of the game).

At his session, Molyneux alluded to the possibility that players may be able to trade their dogs over Xbox Live (Peter said he wants everyone to meet his dog).