Speaking to someone at gamestop today, in-between Halo 2 calls, the guy was telling me a few gameplay details of Xenosaga: Episode 2:
-Movie to gameplay ratio about the same from Ep 1.
-Cannot use saved games from Ep 1 in Ep2: everything's gone! Only thing that transfers are the swimsuits(??)
-Attack system is something with combination attacks, I guess like Legend of Legia. ex: Fighting a boss, has a weak point. Char A does combo attack to hit, which sets up Char B to attack same weak point.
-Items, weapons and armor obtained from npcs and fighters. Which means conserving items is a must.
-Coming out Feb 2005.