Stories have arisen that Lionhead Studio’s 2010 action RPG Fable 3 is free right now on Xbox Live Marketplace.

The method for acquisition is to go to the Xbox.com listing and attempt to pay in MS Points. The game should begin downloading without charge. Not bad for an afternoons work.

This is getting mixed results however. Some people have been able to claim the game no problem, but others are unable to score the game for free.

This could be some pre-E3 gift to the community by Lionhead or even Microsoft before a Fable related announcement later today at the Microsoft conference. It wouldn’t be too surprising as the same happened to Fable II before the release of Fable III.

Fable has always been a part of the Xbox clutch of exclusives, so a new title for the Xbox One isn’t out of the realm of possibility.

What do you think? Can you get the game, or have you already got it? Do you enjoy the franchise? Tell us in the comments.