Dog Color Changes
If your dog's color changes, it is probably due to your character's actions. Good actions include saving other characters' lives, giving gifts and performing positive quests. Evil actions include unnecessary violence, stealing and harming others. Good and evil actions change the way you look and can cause your dog to change color.
Evil Characters
If you play an evil character, your dog's appearance will alter to reflect this. Its fur will be darker, its eyes will start to glow and it will look scary and menacing. An evil dog's ears will be pointed and stick straight up, rather like a Doberman's. The worse your character's actions, the meaner and more demonic the dog will appear. An evil character's dog will still be loyal to the character.
Good Characters
If you play a good character in "Fable 2," your dog will have a pleasant appearance. His coat will be lighter in color, brown or golden. He will have a rounded muzzle, floppy ears, bright eyes and a cheerful demeanor. Overall, he'll look like a friendly pet dog. The more good and selfless actions you perform, the more likable your dog will seem.
Other Changes
You can deliberately change your dog's breed using downloadable content from the Internet. "To See the Future" is a downloadable expansion that gives you new game options, including the option to change your dog's breed. You can choose from a husky, a hound, and a dalmation. Your dog's appearance will be affected by a combination of its breed and your alignment.