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EpicLight said:

Also notice the insta-teleport at 2:12. Think it's the real loading time? It's like this in Xenoblade Chronicles N3DS, so I would assume it would be.

And, to be honest, I felt like after the whole "Xenoblade X got downgraded" thread, I felt that I needed to remind everyone of how the game progressed in everything BUT the up-close "graphics" that were used in the first trailer at E3 2013. It's silly how people can be turned off by little things like that and ignore the actual purpose of Xenoblade Chronicles.

Incidentally, if you skip to 5:56 and 6:03 and see the bloody floor texture that started that whole fiasco looks fine in this footage.  I guess we'll never settle this :P

 

But the game does look great.  I'm even liking the character models a lot more now.  Before, I was concerned mainly about emote limitations, but in the last few videos and definitely the end of this trailer, it seems clear that won't be an issue.