Well, Takahashi once stated this though. http://www.siliconera.com/2014/11/25/xenoblade-chronicles-x-will-deep-sci-fi-story/

He described the Wii game's story as basic, and mentioned that X's would be deeper. He's just contradicting himself there. So, in short, dunno what to believe. 

I cant argue with that, they should of named the game different then.

Perhaps they could be taking a Metroid Prime-esque approach where instead of outright telling the story, the story is really told through objects of the world similar to how the scanner functioned in Prime (though I'm going off what a friend told me, never finished Prime myself). This also seems similar to Fire Emblem games where support conversations (which are really fun to read) are told only if you do certain actions that the game doesn't tell you by default. 

Who knows though, I could be outright wrong and if the story is really nothing, that would be an incredibly dumb move considering how they made the trailer look seemingly dramatic and what the first game's drawing points were.

Xenoblades best aspect was its story and music. Gameplay was pretty mediocre. Hopefully they didn't take the wrong approach here.

The more I hear about this title it seems the more I become more disappointed.

Yeah, that's why my current stance is more cautious, rather than critical at the moment. I hold hope that what he's describing here is additive, rather than reductive. Like "the action and scale is expanded so much that it'll make the story seem like a small part of the whole pie by comparison, even though that 'small' part is still bigger and deeper than the original."

I'm sure it will be fine. He said that the first Xenoblades story was basic and he was right. It was pretty standard stuff. I'm not expecting Game of Thrones intrigue here.

The reason why Prime works though is because Metroid isn't a franchise about direct story telling. Also, Prime isn't doing story telling. It's doing world building, something largely independant of story telling. This would be the equivilant of TLOU2 having Prime like world building instead of a deep linear plot. It just doesn't cut it.

Again, I have hope because we've seen things that contradict what he's saying, but the fact that he's even saying things like this to begin with is worrying.

Nintendo wants its own Monster Hunter. Of course, everyone in Japan wants their own Monster Hunter. Monster Hunter has had far more influence on Japanese gaming than CoD has had in the west.

He also more recently said that there needs to be a balance between story and gameplay. One shouldn't outweigh the other.

And I've actually been saying this for a while. People going in expecting Xenoblade's story will not quite get that.