Fable II is to be released as episodic downloads on Xbox Live, Peter Molyneux revealed at his press conference this morning.
The five instalments of Fable II: Game Episodes - covering the entirety of the original disc release of Fable II - will appear on September 29th, and episode one will be free to download.
When you get to the end of one episode, you can decide whether to buy the next one, or commit to buying the whole game online (although the latter option will only be available in some regions). You'll also be able to buy the regular game on disc and continue your save from where you left off, if you prefer.
All the Achievements are in there, as well as the co-op play, and the Game Episodes version of Fable II will be fully compatible with the existing DLC releases Knothole Island and See the Future.
It's an interesting new twist on the just-launched Games on Demand service, and Microsoft couldn't be trying it with a better game - not according to our 10/10 review, anyway.