Fable [Xbox]

Lionhead Studios founder Peter Molyneux may be many things -- visionary, genius, multi-millionaire -- but right now, he's just stark, raving mad. After all, only a complete lunatic would attempt to simulate life itself. But that's just what the daring designer, whose credits include best-sellers like Black & White and Populous, has in mind for his latest creation, which goes by the name Fable.

The title is an epic 3D role-playing game (picture a medieval fantasy setting, wherein your actions affect a character's growth) created for the Xbox with help from Big Blue Box. The title formerly known as "Project Ego" is bound to make a splash.

As with many stories, it begins with a boy. The sprite who serves as the hero of this sordid tale is possessed of a restless spirit and uneven temper. Left to make his way in the world after discovering his parents have been murdered, his potential for kindness or cruelty is boundless.

Aspiring adventurers must choose carefully. His actions have lasting consequences. Focus on swordsmanship, and muscles eventually bulge from the main character's tunic. Rely on Will, or what passes for magic in this context, and you will watch as the star's hairline recedes and his skin grows paler.

Moral choices matter too. Walk a dark path, and visible changes twist the waif's beaming countenance into a shifty glower. Choose the higher road, and you'll tread the world in shining armor as a noble paladin, inspiring confidence in those whose path you cross. Either way, courtesy of a "renown" system, the townsfolk you encounters will have heard of your exploits and react accordingly -- including taking out a contract on your head.

Played in real-time, the title's strongest suit is its living, breathing world. It features variable weather, shifting day and night cycles and scenes that range from dazzling sunsets to stark nights and misty mornings. But the characters populating the virtual universe are the real treasure here. Cuts scar them, love blossoms between them, and many can teach the protagonist certain actions (combat moves, facial expressions, burping).

Similarly, objects in the game possess life: Anything from a sword to a cooking utensil can be used and upgraded as a weapon. Wield that rolling pin wisely, and you'll find out how reactive the environment can be as villagers hoot, holler and foist praise the warrior.

Quests are also handled with aplomb. While many are assigned at a guild, they aren't yours exclusively, meaning that other heroes can claim the bounties. Some also will come from individuals, including women interested in being your wife. Marrying the mayor's daughter, having a brief fling with the girl next door? it's all possible. Just as battling monsters such as goblins and trolls or rescuing yokels from bandits is a key part of play, so too is making your way in the world. Carry yourself personably and you may gain a pet or helpful henchman who will aid during combat.

Reportedly, a 70-person team developed the project. Since they want millions of individuals to experience their virtual dollhouse in as many ways, cooperative ventures are also in the offing. Connect with a friend, who's given the option to man a second controller, and you can discover new worlds together. Fighting alongside one another also serves a dual purpose -- once finished tag-teaming the journey at your place, buddies can save character data and use it in their own game back at home.

Expectations for Fable are high, which has been in development for several years. The product is expected to ship in early 2004.