Contrary to previous claims, Fable III will not be shipping with any kind of motion control functionality. This development comes directly from Peter Molyneux, who also originally broke the news on Fable's Kinect (then known as "Natal") support.
So what happened? Apparently, Lionhead couldn't quite finish whatever Kinect features they initially planned for Fable III, at least not without cutting down on quality. As such, the motion control content has been delayed, though the cut content could be added after launch.
Similarly, Sony already announced plans to patch Resident Evil 5 Gold Edition in September and add Move functionality as soon as the hardware debuts in North America.
Curiously enough, Microsoft PR was initially unaware of Molyneux's latest claims.