I know a lot of games have been doing this recently (Mass Effect), but does Fable 3 have any such features? Just wondering if I should boot Fable 2 up and finish some things before playing Fable 3.
Peter Molyneux has said that the only change you’ll notice is the things other people say to you. Nothing major.
A complete description of the relationship can be found on the Lionhead forums. Note this comment about how NPC speech is affected:
Fable III will read your save file of II, NPC’s will talk about your end game decisions