Umm... hate to burst your bubbles guys, but Faxanadu does not belong to Nintendo, it belongs to Falcom.
IIRC, they even re-released it on one of their Sega Saturn compilation CDs (Japan only of course).
Falcom hasn't made a game for a Nintendo console since the SNES, in fact mostly they make PC games nowadays (with the occasional PS2 title).
I'd love to see them try to do some gamecube titles, but a new Xanadu title might be a tough sell (the World Tree and elf storyline might seem a little too Zelda-y). Better to get an original Ys title.