They have gone on record that the next game will be in a different form then we got XCX as well as mentioning that a lot of what they did in the game was experimental to see how to adapt to HD development.
All that being said, I do want them to comeback to Mira, hundreds of hours into the game, I am nearing then end but can't get enough of the setting and just feel of exploring new vistas hidden away in it. If they do a sequel, they will no doubt have to have a new continent or two but I would like to see more on a ending then we got, for those that say the story is bad, while the main story missions aren't great the way you get to build up NLA's population and the various life forms on the planet through side missions to me was great.
It isn't EPIC on the scale normal RPGs usually take their stories but the story of survival on a new unfamiliar world was well handled. I doubt it can be replicated in a sequel but you never know, also I think more can be done with the multiplayer element. So while I would equally enjoy a single player focus JRPG like the original Xenoblade, I want to see them come back to this quasi multiplayer pool sometime in the future as well and a expanded planet Mira with its mysteries and various alien life forms are an ideal setting for that type of game.
That or a enhanced port of Phantasy Star Online 2 (or even a new C.A.R.D. revolution) being released on the Wii U or NX or Xbox One.
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