It's just Monado, re-branded (and maybe reskinned?). There's a trailer. 
 

Trailer's really old and clearly work in progress but yeah, it's certainly the same game, given the blade and other such designs on the website. Same team as the Xenogears/saga games, so, as close to a real sequel as you'll be getting. They're owned by Nintendo now.

There are mech-like things in it at least ;)

" It is with a very high probability NOT a new Xeno game. "

That's a dumb name. Is that just their thing now, so you know its an RPG made by them? Add Xeno? From what I could tell Monado was nothing like a xenogears/saga game at all, but if anyone could contrive a connective thread between this, a clear fantasy game, to the rest of the xeno universe it would be these dudes. They got convoluted nailed down pat.

This has me a little bit aroused. Proves the Wii was a fantastical investment after all! :D

" That's a dumb name. Is that just their thing now, so you know its an RPG made by them? Add Xeno? From what I could tell Monado was nothing like a xenogears/saga game at all, but if anyone could contrive a connective thread between this, a clear fantasy game, to the rest of the xeno universe it would be these dudes. They got convoluted nailed down pat. "