A recent Ask the Developer confirmed that a Torna - The Golden Country-sized expansion is planned.

2 Genki Yokota answered a range of questions to do with the studio and Xenoblade Chronicles as a whole.

Most importantly, Yokota confirmed that an expansion pass is planned for the game.

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“It will be quite a high volume of content that will not let you down.”

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Interestingly, Yokota also seemed very enthusiastic about continuing on with the Xenoblade Chronicles series.

When asked if it will continue, Yokota responded “Yes, it will still go on!

I want to keep it going as long as possible!”

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It sure makes it seem like Xenoblade Chronicles 3 won’t be the final entry in the JRPG series.

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