The Kinect adventure is set several years after the ending of Fable 3 and offers a branching adventure through Albion.
Players will interact with their horse through the game, where actions such as tugging the reigns and pulling out arrows will change its relationship towards you.
Magic attacks will be controlled by throwing forward the right hand, with the speed and direction of the attack being taken into account.
The left hand will hold a whip-like magical item that can pull enemies and objects such as columns towards the screen.
Voice controls will also impact battle, where aggressive and soft speech will alter the strength of magic attacks.
It will also be possible to travel on foot at any point in the game to explore dungeons and towns through leaning from side to side.
Fable: Heroes, a spinoff four-player adventure that will share coins and puppets, has also been announced by Lionhead Studios.
Fable: The Journey will be available exclusively on Xbox 360, and has been suggested to release in September.
View a gallery of Fable: The Journey pictures below: