Characters in Fable 2 have a unique opportunity to morph as they progress
. You will find this system much like of the first edition to Fable with a few minor tweaks.
The main attribute to a character in fable 2 is good and evil. Obviously if you pickpocket or attack innocent people in the game this will increase your characters evil level. When a character is evil they tend to be feared by all other characters in the game. If merchants will talk to you you might find them charging you a hefty price increase. On the opposite side if your character is good they will be hailed and liked by other people in the game. This can also result in a discount on purchasable goods. On a secondary level a player can also become more pure or corrupt. While lose of purity eventually turns a character evil it is on a much smaller scale. This allows the player to be a little bit more flexible with his/her actions in the game.
Another unique aspect to characters in Fable 2 is their ability to morph graphically depending on the actions taken in the game. For example if your character has a high strength, the character will become more muscular or if you eat too much your character will become fat. This type of character morphing provides a unique kind of connection with the player of the character. The player decides how they want their character to look by what their actions in the game are. A long time player of the game may notice slight changes in their characters age over time. As a character progresses it is only natural for the character to age.
While these are only a few examples of the unique character system provided in Fable 2 you can start to see how the game designers are connecting with the players on a more realistic playing field. This type of character morphing is rarely implemented in games because of the extreme amount it of time it takes to code and implement graphics.