Peter Molyneux has said that in Fable 3 the co-op system will be more advanced than in Fable 2 by allowing your character to run around in your pal's version of the world.
Speaking with 4 Guys 1UP Podcast, Molyneux touched on this a bit, and even mentioned your canine companion.
"I heard you all about co-op," he told the fellas. "You want to have your own hero come into the world. Okay, fine, you can have that definitely.
"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."
But, since the series has always been about "consequences", the co-op bit in Fable III will be no different.
"It means - careful who you invite in, 'cause they can screw the whole thing up, man!", he added.
"Yes you can use touch with your co-op partner," said Molyneux. "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."
Wow. No words.