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curl-6 said:

Setting grass and shadow draw distance further out might take the press of a button, but then there's optimising so that the framerate doesn't tank with the increased load.

And that's the other thing, even if the game is finished on time, they might push it back to early 2018 to avoid a Q1/2 game drought; Yoshi, Kirby, and Fire Emblem may not be ready until mid or later next year, leaving a hole that needs to be plugged.

Yeah, I don't see them delaying the game because they are unsatisfied with the shadows or draw distance. Nintendo wouldn't tolerate that. They have about three-four months to find the most optimized graphical state, and probably have a few people working on that. If the game is designed well none of this would affect game events (there won't be bugs to fix.) Since xeno games aren't the most interactive I don't see that being an issue. 

I think the second scenario is more likely, but Nintendo would have a holiday gap maybe since Super Mario Odyssey is releasing in late October. They might what a big November or December game to get those holiday sales. 

I was just reminiscing about how crazy it is that this game is getting a simulatenous release in all regions, considering what it took to get the original Xenoblade over. Imagine if that never happened? We might have not gotten XBCX or this at all, since Japanese sales for these titles aren't the best.