Fable III tests values by seeing how you rule a kingdom. Will you let your subjects wallow in poverty while living a life of luxury or sacrifice everything for your subjects?
Joystiq explains the judgment system allows players to dictate laws like what to do with a girl that stole bread with quick decisions. The touch system lets the ruler order his subjects to complete tasks like saving a child from a burning building.
While a handful of games give players choices on how to save the world, Fable III asks players what happens afterwards.
Fable III is slated to come out in holiday 2010, around two years after Fable II.