During an “Anniversary Countdown Special” for the popular Dragon Quest series, Yuji Horii, the creator of the franchise, said he would like to bring back the “Spell of Restoration” for Dragon Quest XI.
The “Spell of Restoration” was a password system present in the Japanese versions of Dragon Quest (or Dragon Warrior in the US) I and II. Passwords were a common thing in early games, but with the advent of saves in games such as The Legend of Zelda, passwords were phased out of future Dragon Quest games, starting with Dragon Quest III.
While he did not explicitly state how passwords would be integrated into the new game, it can be assumed that they will be used in tandem with actual save files.
Dragon Quest XI is due to launch in Japan for PS4 and Nintendo 3DS sometime later this year.