Gamers freely explore an alien planet, use armed mechs to battle hostile invaders, and try to rebuild humanity in Xenoblade Chronicles X. The story finds two alien races battling near Earth in the year 2054. The fallout from their fight nearly destroys the planet, and humanity scrambles to save the race by sending giant ships out into the galaxy. Two years later, The White Whale ship crash lands on the planet Mira after being discovered by one of the warring alien races, and its cargo of Americans joins the native Nopon race to establish a city known as New Los Angeles.

Though the Nopon are friendly, Mira is filled with many hazards, and the hostile alien attackers are always looking for a fight. Players can freely explore the world on foot, or climb into large humanoid mechs called Skells that can also fly, go under water, and transform into other vehicles. Gamers customize their character and weapons, head into the wilderness looking for stasis pods that were ejected from The White Whale as it crashed, and engage in real-time battles in which they can move freely and unleash special moves called Arts. Players can also join an online squad to share information and battle powerful world bosses.