The final shot of the trailer is a pretty direct reference to one of the most iconic images of the original Xenoblade. However, it looks like the game will be featuring a completely new cast of characters. It likely will take place some significant amount of time after the first game, and it might not even be on the same world. So my early bet is that it will be a new story that newcomers will be able to easily get into, but it will have a lot of references to events from the first game in it. Who knows, it might even reference stuff from X.