This is maybe the first time I've seen a Nintendo game using motion blur. Makes a big difference to combat animations
I believe Xeno X already used Motion Blur. Not sure about 2 though...
BTW, it's just me... Or does the grass disappears when the character is about to make contact with it? So weird xD
X used a motion blur...sort of. It was mostly just on the edges of the screen iirc to enhance camera motion and very rudimentary.
Xenoblade 2 actually has per object motion blur, most noticeable in cutscenes. Xenovlade DE I think had the same setup. So it makes sense 3 would have this feature.