Godzilla 2

Godzilla 2 was the proposed sequel to the 1998 Godzilla film from TriStar Pictures.

Plot
The surviving Godzilla (Zilla) from the first film's ending battles a giant insect in Sydney.

Why It Was Cancelled

 * 1) The 1998 Godzilla film was heavily panned by critics and fans alike, despite being a commercial success and is currently a stand-alone film.
 * 2) Rolland Emmerich and the rest of the filmmakers didn’t want to make fans mad again after the first film was released.

Result

 * 1) The cancelled sequel ended up being an animated series that aired on Fox Kids from 1998 to 2000.
 * 2) Sony/TriStar's rights to the Godzilla franchise expired in 2003 and their rights were reverted back to Toho.