Back on topic, my first impression from the teaser trailer is that it's a direct sequel to Xenoblade and not just another "xeno" title, but we'll see. Will we see the story take place on the Mechonis titan? If you notice the fighting mechanics and exploring lush fields laden with giant enemies, it's very reminiscent of Xenoblade. The big red "x" did throw me off though. We'll just have to wait for more details to come.
If it is a direct sequal to Xenoblade, then I don't think it can take place on Mechonis.
As I recall at the end of Xenoblade, the world was reborn beyond just the two titans. Also I seem to recall that Mechonis was either seriously damaged or destroyed about 1/2 to 3/4s of the way through Xenoblade.
You know, I don't see why they used the Xenogears X. Xenoblade had nothing to do with that, other than the name and the homage. I love the X, but it just seems cruel to tease us as though it'll be a new "Xeno" game like that.
Maybe they are going to do a game "set" in the Xeno chronology that uses a version of the Xenoblade battle system.
It's likely to tie into Xenoblade at some point. If the face at the end didn't belong to Shulk then it belonged to a dead ringer for him.
This game also looks to be multiplayer as hell given that not only were the characters named Player 1/2/3/ect but that when one of them was in the mecha the name was replaced by what looked to be a fixed name.
Also the mecha was referred to as a "Doll" in the mecha's fuel gauge up in the top right hand corner. There's also a second gauge in the players' UI plate that looks to replace the facial tension display Xenoblade had, further cementing the hypothesis that players will be able to make their own custom characters.
Plus the arts on the art pallet changed based on what weapon the player was equipped with or whether the player was riding the mecha or not, which further suggests that rather than taking along existing characters with preset skills and arts you'll be able to select and possibly even change your loadout.
And finally, I noticed when the player was in the mecha hacking the parts off of an enemy I noticed that not a lot happened to the enemy's health bar, which suggests that doing so either meant the player had crossed a health threshold, or that there are secondary targets one can attack to weaken an enemy by or to loot when the battle is all said and done (which feels like something Monster Hunter would do).