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"Now we can play Xenoblade Chronicles on the New Nintendo 3DS XL, and...now, this may sound a little egotistical, but I thought, 'This is really going to raise the bar for RPGs on portable devices.'" - Takahashi
This. Like I've been saying, and like Takahashi reinforced here, if we're getting games like this now, the next generation of Pokemon has a new bar set for it with this game. With the next handheld, this game will be left in the dust when it comes to potencial. Gamefreak needs to get serious about taking advantage of that potencial.
And the attack animations need a serious step up. They simply are not good. Take a page from something like the Naruto fighting games. They know how to make fantastic cel-shaded attack animations.
You're definitaly not dreaming to big. It's where Pokemon needs to evolve. And you're right on the money about no random encounters. JRPGs left that behind decades ago. It's not good game design. It's a concept that has been dropped by nearly every relevant JRPG franchise, some even decades ago. Mother dropped it in Mother 2, SMT dropped it in SMT IV, and I don't even know if FF ever had it. They need to go. The tech will be there to just use the battle models in the overworld. There's absolutely no reason for them anymore.
One other thing though is that Pokemon seriously needs to drop HMs. Nobody likes them. All they do is limit the team you can have. Just give the Pokemon passive abilities like with Mega Lati@s and Soar. And don't tie it to an item. Every Pokemon that can use the move Fly this generation should just have the Soar ability next generation. And fast travel shouldn't be tied to any Pokemon at all.
Just create an NPC who always carries an Abra or something with him. He appears in every town and every route, and all you need to do is call him or use an item and it will instantly teleport you to where you want to be. No reason any Pokemon slot should be reserve for something that should be a key part of literally any game with a large map.
