The Xenoblade Chronicles 3 Direct confirmed new details for the game including its expansion plans.

Included in the Direct were broad strokes about the story, as well as the game's party composition and other elements of the battle system. Characters can be placed in specific classes and combine to form "Ouroboros", while "hero" characters will provide a seventh character for the battle party and can be met during the story.

An expansion pass will be available alongside the base game for US$29.99, which will give "helpful items" and color varying outfits for purchasing. Two sets of DLC with hero characters, new quests, and challenge missions are due by December 2022 and April 2023, with a full "story scenario" by the end of 2023.

Amiibo will also be supported; any Amiibo can be tapped for items, while tapping the Shulk Amiibo from the Smash series unlocks a sword modelled after the Monado.