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There's nowhere to take the story since Ryan Reynolds wasn't trapped in a Pikachu body anymore by the end of the film. So they can't do that again.
Also I don't think the movie did too well in Japan at all. From what I remember on twitter, Japanese fans didn't really like the "realistic" or "monster" like designs of the Pokemon, and felt it was off-base. It's also probably why we never got a different live-action Pokemon film based on the games or anything else.
Kind of funny since the Pokemon anime movies also stopped once Ash's era ended too...
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