The graphics on this look much much better than original unveiling.
Here is what I found most interesting in the interview
Enemies in Xenoblade roam the fields alongside you. Encounter an enemy, and the game will transition seamlessly into battle. Takahashi explained that he didn't want make the game transition from field to battle in typical RPG style.
Since battles take place on the same fields across which you and the enemies roam, you'll find that nearby enemies will join in on the battle. As a strategy, you'll want to engage in battle in areas where there aren't any other enemies.
Your main character will adventure alongside two AI-controlled party members. Your character performs his attacks automatically while you watch the action and select special skills, known as "arts." Arts include attack skills, recovery skills and so forth, and are learned as you progress through the game.
The game will offer an adventure of around 50 to 60 hours, said Takahashi. This time will not consist of endless leveling up. It also, he made sure to note, won't consist of endless event scenes.
This first major feature on Xenoblade consisted almost entirely of the interview with Takahashi, with Famitsu getting its hands on just a few pieces of artwork and screens from the game. Xenoblade is set for a Spring release, so the wait for a more solid look shouldn't be too long.
So battle plays like a traditional RPG but visually looks like an Action RPG?
I also like that extra enemies might wander into your battle, but that could be a little annoying later on when enemies are tougher and you are low on energy.
I also liked this quote
Your movement through the world will be seamless. "We've put effort into this," said Takahashi, "because we felt that in order to show a living world, we needed an overwhelming sense of scale, like that of an MMORPG."
Exploration of the world looks like it could be one of the game's charms. Takahashi said that he hopes players will simply walk around in search of special unexplored areas which have beautiful settings. You'll get experience for just finding these. Some areas include monsters that can't be defeated at first. Once you've powered your character up, you'll want to return to take on those beasts.
so not only are there side quest, but there are hidden areas and reasons to backtrack and wander around aimlessly.