Lionhead boss Peter Molyneux has told OXM that the studio has dropped one of the Xbox Live features from Fable 3 because of a shortage of resources.
When the game was first announced, it was to include an advanced form of weapon trading: weapons would evolve depending on how you use them and the size of your Gamerscore, and you would then be able to trade the custom weapons online.
No longer, we were told at Gamescom. The weapon customisation and evolution is all present, but the auction system proved too much. "The burden of running this online auction server became a burden too many," said Molyneux.
"It was on our list of features to do, but we had the choice of doing the main co-op right, and balancing the game, or we could do the trading house. And we decided to do the co-op."
You can still trade weapons, but you have to do it one-on-one with people on your Friends list: as in Fable 2, they appear as orbs within your world which you can interact with. Or you can haul them in as a henchman using the aforementioned co-op; any loot or skills you earn can be taken back into your game.