Meaning likely Nintendo exclusive. A bullet I'm willing to bite for a return of Xenogears.There is no legal limbo as far as I know, Square still wholly owns the IP.
The real problem is the creative team behind the game left Square after Xenogears to form their own studio, now known as Monolith Soft; they're also the ones behind Xenosaga and Xenoblade, and are owned by Nintendo at this point (they've moved around over the years). Pretty much anything other than a neat little reference is going to need their involvement to be accepted by fans, and whether or not that will happen is a big open question by itself; so there's still an obstacle, it's just not a "legal limbo" one.
That being said, I'd like to see something revive the Xenogears IP at some point... but without a doubt, it needs Monolith Soft to be involved.
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