It starts out like FFXII, you encounter a monster in real time, character says ''there'S a monster'' you enter battle with it, and the battle is like FFVII/FFVIII and ATB is used.

In other words, you see the enemies ''no random encounters'' and then you fight ''ATB fights''

To anyone who played Super Mario RPG SNES, it's very similar to what the producers are saying and that game.