In a recent interview with Famitsu, Mistwalker founder Hironobu Sakaguchi said that their latest project, the Xbox 360 RPG Lost Odyssey, is 70% complete and that they are currently working on tuning, balancing the gameplay and reducing load times.
According to Sakaguchi, in a translated transcription provided to IGN by Microsoft, the game will use a fixed camera but will incorporate cinematic techniques such as "camera vibration and focus effects" to provide realism. In terms of content, Sakaguchi said the primary theme is "humanity." The music, by Nobuo Uematsu (Final Fantasy, Chrono Trigger) is reportedly a big change in style from his previous work on Blue Dragon.
Also discussed is the battle system, which IGN described as a wall system that will "require players to ensure that the front guards protect the rear," that enemies will also "use these formations" and that there are plans to incorporate "analog trigger system for physical attacks" to breach the walls. The description is rather ambiguous and confusing; we've contacted Microsoft for a copy of the translated interview.