A new Xenogears game or remake/remaster would be sick. But I'm guessing since Monolith Soft / Nintendo owns Xenoblade, and Bandai Namco still owns Xenosaga but it's basically a dead IP w/o Monolift Soft, SE doesn't really care to bother w/ any sort of potential IP issues if they release new Xenogears content. Even if it's "all cool, man" between all the publishers, SE could just not want to confuse consumers. SE has obviously given up on the IP. 20+ years and how many remasters, remakes, new IPs, etc have they done that AREN'T Xenogears?

Reminds me, did I put Xenogears on that "favorite dead franchise" thread?