Fable 2, it was a more fleshed-out co-op system. Sure, we could see our friends' orbs floating about Albion and we could even invite them to play as a one-off character in our world, but it was one unable to collect experience or have any lasting impact on our game. As you might image, Lionhead's head lion Peter Molyneux is ready to deliver just that in Fable 3. Molyneux told the 4Guys 1UP podcast: "I heard you all about co-op. You want to have your own hero come into the world. Okay, fine, you can have that definitely."
Detailing the system further, he admitted that the player's dog and weapons will also be available in co-op. "When you come into my world, you come in as your hero, with your dog, with all your unique weapons, self-crafted weapons. I heard you -- you don't wanna be tied to my camera, you wanna go off and do your own thing in my world. Fine, fair enough."
That said, he warned about "consequences" from bringing in said friends to your own version of Albion. "It means careful who you invite in, 'cause they can screw the whole thing up, man!" And then, when the possibility of using the new "touch" functionality came up, things took a turn for the weird. "Yes you can use touch with your co-op partner. Yes you can walk down the street hand-in-hand. Yes you can drag your co-op partner to your dungeon and see what happens. Absolutely." Keep in mind, folks -- what happens in the dungeon stays in the dungeon. Rawr!