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Well Scifi and fantasy are on a sliding scale, not two clean cut categories. I would definitely say Xenoblade is more Scifi than Fantasy due to the heavy emphasis on advanced technology and technological progress emphasized in design and tone.

Also, Witcher 3's world is actually the thing I worry about most in that game (well that and the possibility of more forced, incredibly awkward sex scenes that make me feel like I transitioned from a game targeted at mature adults to one targeted at young teenagers who can't figure out the password for the parental controls their mom put on their laptops). Open world isn't easy and they've never done it before. And to go from doing non-open world to doing an open world bigger than Bethesda games, you take a major chance.