A step below Xenosaga 1....
The Bad - New battle system makes even the weakest enemies a hassle to fight, story focused almost entirely on Jr (gnosis pretty much disappear), Shorter then Xenosaga 1 and most other rpgs, No buying or selling items, Fighting in the mech is also mind numbingly boring and slow.
Overall its a good game, the story will still drag you in if you can get past those battles but I found myself bored to tears a bit too often. Hopefully part 3 will fix these problems and return the series to its roots.