Eurogamer: So you're not going to announce Fable 3 at GDC... But didn't Jonathan Ross already do that via Twitter?
Peter Molyneux: We were at the BAFTAs and so was Jonathan Ross. There were ten people from the Fable team, and they were so excited to win the award that everyone downed the medium-cheap wine on the table - about two bottles each.
I went off to do some interviews. When I came back two of the programmers were slumped on the floor, virtually in their own vomit. The rest of them had Jonathan Ross literally pinned up against a wall, going, "Go on, do a voiceover, do a voiceover, do a voiceover..." Poor Jonathan. They were virtually beating him up.
He then assumed it was for Fable 3, but it could have been a voiceover for any of the Fable things we've got planned.
Eurogamer: So is he going to do a voiceover for you?
Peter Molyneux: He's got a really unique voice. I wonder how recognised it is outside of the UK. I don't mean to question his notoriety, but there's certainly some humour in his voice which would be interesting. But there are no set plans.
Eurogamer: When can we expect to hear more about Lionhead's project?
Peter Molyneux: Two things need to happen before we can tell the world. Microsoft has to see the sense in what we're doing, and we've got to absolutely have something to show you. This is the rule now, the rule I've set myself - I will absolutely not talk about anything, any concepts or ideas, until I've got something tangible to show.
We're almost there on the tangible thing, and we've been showing it round internally. It's probably the best reaction I've ever seen to anything I've done.
Eurogamer: Will you be ready to show it off at E3?
Peter Molyneux: I would show you now if it was up to me. Right this second, on that TV there.
It's something which has been worked on for a very, very, very long time. When you look at it I think you'll say, "Well, that's just insanely simple. Why has it taken so long?"
But what makes it so hard - and this is teasing you horribly - is making it so simple, and yet to have all this unbelievable technology behind the thing.
Eurogamer: Yes, that is quite annoying, thanks Peter.
Peter Molyneux: You've probably got a mild hangover, and that sort of annoyance just makes it slightly worse...
Eurogamer: Absolutely not, I'm extremely professional. And still drunk. Is it a new Dungeon Keeper?
Peter Molyneux: No. Did you go to the GDC Awards ceremony? The first half of the ceremony was all about independent games. It's amazing; it's almost identical to when I started in the industry. You've got these people walking on stage, they look pale and geeky, they are obviously are pushing their bodies to the very limit. And they come up with these ideas which have never been seen before, and they're getting them out there and making loads of money. Who would have though that would come around again? It's gone full circle.
Eurogamer: Do you think we're going to see less huge teams and massive budgets now, what with the monster munch affecting games companies?
Peter Molyneux: If a serious amount of money is going to be bet, it's got to be a pretty sure thing the bet is going to pay off. I'm going to give EA some credit for Mirror's Edge and Dead Space, because they really did try to create some new franchises. I take my hat off to them. I think anyone looking at those games can criticise them a little bit, but you can admire their bravery. But it's going to be a brave, brave person who bets on a new franchise, I have to say.
Eurogamer: Or even tries new things with an old franchise... I'm thinking about games like Prince of Persia, where they tried to do something different with an old brand, but not that many people bought it. Whereas you put the words "Tom" and "Clancy" on the box again and give the man a different gun, and it shifts millions...
Peter Molyneux: It's funny how the games industry has almost bucked the trend of the rest of entertainment. I'm not criticising the recent Star Wars films...
Eurogamer: Don't, because they are the best films ever made. That is a scientific fact. I am a prequels apologist. I am not ashamed.
Peter Molyneux: The first three were brilliant, but the next three weren't.