LipeJJ said:
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GTA 4 released in 2008, not 2007 (or earlier.) GTA 4 is not very comparable anyway. Apples to oranges really. Even still for a game that doesn't focus on the city as much, Xenoblade's isn't that bad. As far as textures go it matches GTA IV quite fine.
How much better do you expect a Wii U game to look? Xenoblade X looks as much better than Oblivion than Skyrim does (and I'd argue more), and Skyrim was a significant improvement over Oblivion. XBX fits well with the end of the 7th generation as far as graphics go, that's 2008-2012 visuals.