So, I gave the demo a try earlier this morning, and it's definitely an interesting game. I also made sure to pre-order it, and I wish I would have got in on the Wizard Edition when I saw it months ago.
Anyway, the demo has two segments that you're allowed to play. There does appear to be a time limit, but I'm not 100% sure how long it is as it only shows up when your time is nearly done; I think it appeared when three minutes were remaining. I played the first segment (the one on the left) where you start in a forest and are tasked with taking care of a raging guardian. This segment was a little tough on me, because the demo pretty much threw you in right before a boss battle with no real introduction to the battle system. I died twice on the boss before I learned a few nuances about how the system works, and taking advantage of those aspects of the battle system definitely made the fight a lot easier.
The battles are performed in real time and you're allowed to move around in free space (i.e. not a grid) as long as you're not executing a command. Commands can be anything from defense, attack or special moves. Now, it appears that the main character summons this sort of creature to fight for him. If you've seen any artwork, it isn't Drippy (the weird lantern creature), but some small creature with a sword and shield. Drippy does appear to be in your party, but I was never able to do anything with him, or at least, I couldn't figure out how. You're able to dynamically switch between the main character and his small fighter, which is necessary as the main character is the one with the heal, and you'll probably need it.
One aspect that people will probably be happy to hear is that there are no random encounters. Enemies exist on the map with you similar to Blue Dragon. One thing that I picked up on quickly was that it seems like enemies move a lot faster than you. It got a bit tiring after awhile as the mobs that I was fighting were all rather weak, but they would chase me down once they spotted me. I was trying random buttons to find some sort of run/sprint button, but nothing seemed to work.
I didn't really get to see much of the story as I was only in a small part, but I have to say that they gave Drippy a really weird translation... I suspect that they're pushing him with some certain accent. I always play games like this with the Japanese language option, and Ni no Kuni does have one. So, I'm not certain what the English voices sound like, but Drippy didn't appear to have a weird dialect in the Japanese dialog. It doesn't really detract much, but it is odd reading some of the spellings of words. I'm trying to recall an example from the game, but I can't remember. It seemed like there were random Us being thrown in like "oveur" instead of "over", or something like that. Strange.
The game is definitely very nice looking. It reminds me a lot of Blue Dragon, but with more of an animated look than a cell-shaded look. The world is 3D, which is also similar to Blue Dragon, and not isometric similar to games like Lost Odyssey.