Monado seems to stem from Monad, a term referring to a singular unit or entity (compare to Triad, a unit or entity in three parts). So I suppose the Monado is literally "The One Sword".My brother thought the weapon was actually called the Xenoblade until I told him otherwise.
The prefix Xeno- means "other". Xenophobia is "fear of the other" (i.e. that which is different). Xenobiology is the study of the biology of non-Earth life; the alien from Alien is a Xenomorph (other-form).
So Xenosaga would be Other-saga, and Xenoblade would be Other-blade. Though this could also be transliterated as Alien-saga and Alien-blade.
-- excerpt from episode 06 of Etymological Fun with Sehnsucht
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