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XVI mogs this one.
Yes, a lot of them are killing monsters/fetch quests, kind of what mercenaries do to make a living, and you can only boil quests in a video game down to a few categories (collect/kill/NPC interactions/mini-game).
The game features an affinity system and an entire menu for this system where you have competing questline routes between NPCs that influence their affinity, who becomes friends/enemies, who joins your city, and so forth. A lot of quests are related to those NPC storylines and not just simple fetch/kill quests. Some of the Xenoblade games have, likely, the most proper large number of NPC related meaningful quests of any game. Most games tend to have very few meaningful NPC related quests, including even games like Skyrim paling compared to Xenoblade on this point. A lot of them also are character development (lore/background, relationship, etc.) specific quests, events, or city development content as well.
In addition, the games often make it easier to manage the fetch and kill quests, at least, particular in XC1. You can complete most of the quests as you explore the world rather than going out of your way. This is further reinforced due to the future vision mechanic letting you know what you need to collect or the ability to turn in quests remotely and also the ability to start a large number of quests to carry out simultaneously. It removes a great deal of the tedium and lets you focus on exploring and progression.
They're also optional if you don't like them. Now, do they include chain linked quests as well? Yes, though the individual quests aren't as complex as some of the ones you might find in, say, Skyrim but they're also two different types of game genre to begin with.
Besides, OP was specifically asking for an experience like Xenoblade Chronicles and they already played the crap out of Final Fantasy XV, a similar game.
I don't have a PS5 so I haven't even played this game yet, but YouTube reviews are saying it's running even better than FF7 Remake and that was leaps and bounds better than my limited experience with FF16.
It's an MMORPG and can be played free until level 70 and has a main story as well as lots of other things to do, alone the free trial can occupy hundreds of hours.
The story starts really interesting, but gets very dull very quickly. It's storytelling is incredibly safe and does not push any real boundaries after the introduction. You will probably be able to spoil the story for yourself if you've ever read a basic medieval-style fantasy series. (Which is probably why I was so bored with it.)
Side Quests are outright bad. and only a handful of them have any meaning. Even those that have "meaning" are bad.
The world is a dull slog of generic fantasy landscapes with hardly anything unique about it.
The regular combat in FF16 is not very deep or engaging. It lacks depth. It's fun for a bit, but never really changes. All encounters are played the same. It gets boring quickly once you notice it.
Eikon fights drag on way too long. (I'm one of the weirdos that hates the Eikon fights though.)
FF7 Rebirth is a better game. Also played on PS5 at launch. Purchased PC version because the PS5 is incredibly underpowered. PS5 version either looked or ran like dog dookie.
Story is more interesting to me than FF16, probably due to the changes from FF7. (Not going to say I like the changes or not)
Combat is more engaging, with multiple characters to play as.
More side content to do, most of which is busy work. Though, a handful of content is actually good.
Actual mini-games... so many that the mini-games are simultaneously a praise and a criticism.
They're both good games, but FF7 Rebirth is the better of the two.
I understand and respect that not everyone is bothered by this or care about it, but for many like myself, Denuvo is a deal breaker.
In the end it's your choice to make.
Have you played Remake? I found that to be kind of boring for me, was an entire game where you just feel like you're getting ready to do something, but that something never comes. You combed your hair, get your cloths on and stand at the door for the next game to open the door so you an actually go out and have an epic adventure. You can probably just grab a recap, the story was kind of silly anyways.
Hard disagree, it's a good game that is marred by bad decisions. Combat is good, difficulty is not so combat is never really tested. Boss fights/music and sets are top notch though!
But in terms of pure quantity of content, FF7 Rebirth has so much more, even a little "too much"
In terms of gameplay, I have more fun in FF7 than FF16