Xenoblade Chronicles 3 is reportedly in development, and an announcement is expected out sometime this year. The rumors were first reported by Fanbyte. Actress Jenna Coleman, known for her role in Doctor Who, also played Melia Antiqua in the original Xenoblade Chronicles. She appeared as a guest on the Din's Meteorite YouTube channel to talk about her past roles.

There, she talked about her time in Xenoblade Chronicles and the recent Definitive Edition remaster for the Nintendo Switch. She said:

“God, when was the first game? Ten years ago? It was a long time ago, I did it pre-Doctor Who days and when they did the second one, they asked me to come back. And I think they’re going to do another, common knowledge? Don’t know. Yeah, I think they’re going to do another. Not sure if I’m allowed to say that.”

The rumors about Xenoblade Chronicles 3 started stirring after this statement. The same Fanbyte report also confirms that rumor to be true. Additionally, the game is already in the final stages of development.

The third game in the Xenoblade Chronicles series will apparently be set after Xenoblade Chronicles 2. However, it will be in a far-off future. It will also feature some returning characters who have outlived the previous game's human characters.

Allegedly, Monolith Software originally set the game to release by Winter 2021. However, the pandemic might cause delays in the release date. They are also allegedly facing some issues optimizing for the Nintendo Switch. If the rumors are true, JRPG fans have a lot to look forward to.