http://www.thesixthaxis.com/2011/06/29/dynasty-warriors-7-xtreme-legends-announced/

"Famitsu are reporting that Dynasty Warriors 7: Xtreme Legends is in the works, with an anticipated Japanese release date of September 2011. Three new characters will be added to this expansion, of which we know Guo Jia is one of them.

Legend and Challenge Modes will be added, plus the ability to play as any unlocked character in the game’s main story mode (assuming you have DW7 save data)."
 
Yeah, I'm excited, Although this will most definently be sold as a new boxed game im hoping they go down a DLC route too. Hoping challenge mode i the old Xtreme mode, endless stages to see how far you can go before you get overwhelmed. Guo Jia is nice too, be nice if he had the same demeanor as he had in Dynasty Tactics, loved him in that.

Legend was essentially the same as those character stages currently in Conquest mode, just erm...bigger! Xtreme was the endless stages with a shop in between with the ever increasing difficulty until you could go no more, had a nice leaderboard to see how many stages you could do.

Hopefully they go the method of adding XL as DLC alongside a retail release.

I sure as heck don't need more boxes of almost the same game, ha.

I thought they were done with Xtreme Legends. Will this at least be released as DLC?

Right now it looks like XL going to be another disc and they do that thing again where you swap out the discs to verify you had the first game. They haven't really made any announcements if they might do a dlc version, but I hope so.