Dynamic cooperative play was shown off, with another player teleporting into the game world instantly. Any experience or loot that players earn during a co-op session can be kept and used in the single-player mode.

An Xbox Live Arcade gambling game will also be released a few weeks ahead of Fable 2's shipping date, allowing players to earn money that can then be used in the full Xbox 360 game. The game of chance was described by Molyneux as a cross between roulette and craps.

Full family simulations, complete with growing children and complaining husbands, were also detailed. Molyneux ended the demonstration by having his co-op partner shoot his whining NPC mate, remarking that players must be careful about who they bring into their world, as any changes to the world caused by a co-op player are permanent.

A previous version of this story contained a mention of online cooperative play. While co-op will be featured in Fable 2, online co-op not yet been confirmed.