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Jumpin said:

This probably takes place at least 500 years later, or in a different part of Mira. At least the beginning of it. If the game is coming out next year, no doubt they're reusing the old Mira map as well to save time.

 

Curious how the world had no enemy and very few features though. I also don't like the fact that the main characters are kids.

Actually, it could take place on the planet created at the end of the first Xenoblade Chronicles as the Homs, Nopon, and Machina expand their civilizations.  We clearly see Homs architecture in this trailer and what looks to be armor inspired by a combination of Machina and Homs armor design.  This could be a prequel though, if the Homs are the Samarrians of X.  Though that would mean it takes place centuries or thousands of years before X (depending on the nature of the recreation performed by ALVIS).