Well that god of a man behind the Xenosaga games Tetsuya Takahashi is making a new RPG for the Wii. He stated it is not related to Xenosaga (and most likely not Xenogears either ). If anything it looks as though it shares more similarities with Baten Kaitos also made by Monolith Soft. It looks quite interesting and this is just another reason for me to get a Wii . It’s looking at a Japanese release later this year.
Here’s two links relevant to the topic!
http://www.aussie-nintendo.com/news/21551/
http://rpgland.com/news/xeno-lives-xeno ... olithsoft/
^ (I love the screenshot with the two huge robots that looks like something from a Xenosaga game)