Player decisions affect the world, and the disposition of your horse in Fable: The Journey
In Fable: The Journey, your poor cart-pulling horse will "pay the price for your mistakes," according to Peter Molyneux.
According to a preview of the game on Joystiq, Molyneux decided during development he wanted players to care about the equine during the game, which will contain the same moral choices Fable fans have grown accustomed to. In The Journey, your decision will not only affect the world, but the disposition of your beast of burden.
There's more to it than just steering your carriage or nurturing your horsey-bond, the game will also allow you to go on foot for a bit, and you can shoot enemies with fireballs, and use a smart whip-like sentient being to grab enemies, toss them around, or use on the environment. It's tendrils can also be upgraded and if you overuse the being, it will "lock up" until the player can calm it down "with soothing speech."
Joystiq goes on to say the "Unreal Engine foundation" of the game provided "a beautiful place to lazily navigate a horse-drawn carriage through," with various environments to gawk at.
The game launches on Kinect later this year.