http://www.youtube.com/watch?v=6GxUMMGyZcM

Same mechanics, and the X at the end does look like Xenoblade.

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.

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Aesthetic looks great so does the gameplay, would have been even more impressive if you could grab on to the monsters and hit them that way too ala SoTC. Looks like you'll need the normal Controller to play this one, i can't imagine how this would feel with such a big controller and a screen in the way

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Yeah, it has a chat log, and the chat was translated as comments on the size of the monsters, so there's likely to be a co-op feature.

The character at the end looks exactly like Shulk, even the eye color, so this might really be a Xenoblade sequel.