https://wccftech.com/xenoblade-chronicles-definitive-edition-visuals/

Xenoblade Chronicles Definitive Edition will come packed with visuals improvements, and the game's director recently discussed the team's approach and what has been improved over the original.

Speaking with Famitsu, as translated by Nintendo Everything, director Tetsuya Takahashi confirmed that budget and time constraints prevented the developer from remaking everything, and so they started taking things one step at the time, starting from texture upscaling, adding shader textures to enemies and maps and proceeding to character models.