Rejoice, RPG lovers! Fable 2 is finished, according to Lionhead’s Peter Molyneux, who was at Microsoft’s press conference today to show off the sequel to the quirky, fun and terribly short Fable. Showing off the game, which follows in its predecessor’s footsteps in allowing you to craft your character and mold him from a boy (or girl), Peter talked about the AI dog and the co-op over Xbox LIVE feature before announcing that the game, which will feature persistent and seamless drop-in/drop-out co-op, will be out in October this year. Frankly, we’ve waited long enough to get our wife (or wives) drunk at the local bar before wooing them with gifts and making love to them in the pitch black darkness. Hit the jump for more Fable 2 videos from E3, including the Pub Games videos and the new trailer.

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