With Microsoft’s Gamers’ Day at hand, embargos are lifting and information is seeping out. Fable 2 is one of the bigger titles recently shown to the press and we’ve got some interesting new details for you on one of Microsoft’s biggest games of this year.

The game’s director, Peter Molyneaux, sees GTAIV as a real benchmark in how games can handle storytelling. Story is very important in Fable 2 and Molyneaux wants players to feel the repercussions of their actions.

However, what may garner the most interest, for better or worse, is that the developers wanted to include a minigame that involved sexual intercourse—but had to drop the content. Something remains though, that may or may not involve a black screen, some moaning and a choice as to whether or not the act involves protection.

Next-gen indeed.

Some other changes and additions have been made to the game since it was last displayed:

1. The mini-map is gone. Players will instead receive directions from an on-screen indicator, described as a “bread crumb trail” that appears as a golden line, which will function a bit like an auto-navigation system to direct you around the world.

2. The magic system will be comprised of eight spells that can be used to target individuals or attack from a distance. With five levels to your attacks, further abilities will be amassed over time.

3. Real estate plays an important role in Fable 2. Any house in the game can be bought and will unlock something if owned: quests, items or skills.

4. Weather is dynamic and will change as time passes. Expanding on the idea of a day-and-night cycle, seasons will also pass.  Even your character will age over time.

The game is supposedly 20-30 times larger than Fable 1 and is now feature complete, needing only extensive testing before release this Christmas.

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Source: Vinterbird of Neogaf Forums

In an apparent lapse of concentration, Surfer Girl (or one of the few Surfer Girls as we presume) previously let the games of GDC ‘08 slip, or at least she made unconfirmed predictions. She has now removed all of her comments from the article, stating in an update:

Note to self: Don’t answer things when half-asleep leaves rooom for error.
Note to self: Don’t type things when half-awake leaves room for errorr.
Note to self: Proofread.
Note to self: Go back to sleep.

As with the nature of these things, any listed titles are of course rumours and Surfer Girl does not act as any sort of confirmation. And yes, we noted the irony in the spelling of “errorr” too. Get some sleep Surfer Girl.

However, nothing has changed from our predictions. The Final Fantasy XIII engine will be presented in a tutorial by Square Enix, and we’re hopeful that there’ll be extensive footage of this previously unseen game.

The Force Unleashed engine will be on show, along with a discussion on Far Cry 2’s procedural storytelling. Pandemic will be presenting Mercenaries 2: World in Flames’ destructible environment, and ID Software’s Rage engine has a high chance of making an appearance.

There will be a walk through of the Frostbite engine (Battlefield: Bad Company), in addition to three big Fable 2 announcements. You can also expect new footage of Sony’s HOME and XNA announcements from Microsoft.

There is a chance that you’ll see the first footage of Resistance 2, since Insomniac will be discussing the improvements they have made with their PS3 engine. However, if we don’t see the game at GDC, I’m certain we’ll see it elsewhere very soon.

It is unknown whether the public will get to see any of this, but at least you’ll hear about it from us.