Goddammit, I was reading this Nintendo announcement just the other day where they mentioned this by name, but I can't find it now.
Oh, found it
. The article actually misquotes, it's never explicitly mentioned that it's a sequel to xenosaga. Eh, doens't matter anyway. Watching the video, it seems obvious it's gonna be similar to Xenoblade in gameplay, and as long as it's just as good, I don't care what they name it. Xenoblade isn't really a game that needs a direct continuation, story-vise, so it doesn't matter if it's a sequel or a new IP.