Fable II Will Not Have Co-Op at Launch
However, when the game launches, we will not be able to play the online co-op on the first day. However, single player and local co-op are functioning fine. They are still tweaking around the online co-op, but it is definately still coming. Microsoft is looking to get the update out within the first week of launch in North America, so it won’t be so long of a wait.
However, even though that won’t come for about a week after, you’ll still be able to see your friends as glowing orbs in the game and chat and trade items and such with them.