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It seems to me that even though the battle system is action-based they've maintained the depth of turn-based rpgs. I think they are going in the right direction. Mainstream gamers don't have the attention span to play a turn-based rpg.

I believe that giving the player a bigger sense of freedom(exploration and customization) will appeal more to an western audience as well. The Last Story seems like an crossover between western and eastern rpg, combining the best of two worlds.

I think the gameplay will be able to appeal more to mainstream gamers, but still  satisfy hardcore rpg gamers. Especially in the west.