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Well, the original intention was that GODZILLA would launch a trilogy, with the second and third films coming out at two-year intervals.
After the critical drubbing the original took, Sony Pictures initially pretending like they were going full steam ahead with their plans - and the critics be damned - because the film actually did make money.
I think eventually they realized it made money because of the hype and because the other studios were too afraid to put up some real competition against it, and this would probably not work the second time out. Instead, they released the Japanese GODZILLA 2000 as a kind of "tide-me-over" strategy until they could figure out what to do next.
And then the whole thing just faded away...
If they ever do another, I'm sure it will be like BATMAN BEGINS: they'll wait for everyone to forget and then start over and pretend the 1998 film never happened.
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