re: Could they hav actually made decent Matrix sequels?

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The first movie was never intended to spawn a universe or have any sequels.

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It was basically Star Wars. It could be seen as a standalone film, but nothing was really resolved. There was plenty of room for a sequel showing what Neo would do after becoming "The One" and how the conflict between the humans/machines would "end."

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I wouldn't equate the Matrix with Star Wars. Much of what made it so great were the insane fights and weird shite. Once you establish it's all just VR, the dramatic impact is nil. Wow, Neo flies- well no shite, he just got a cheat code.

Everything that occurs in the VR setting, once you know what's up, is boring. Like watching someone else play a video game. You know Neo can overcome, because he's aware it's not real- and so is the viewer.

So, then we turn our attention to the "real world", and frankly that part sucked.