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The Iwata thing makes sense and was always embellished.
But GSC were 100% meant to be the last games - just because Tajiri said at the early stages of development that it wasn't the end, you can't take that as confirmation. If he said 'yes' it could severely affect sales of the upcoming game.
The fact is that he stepped down after working on some of the game, and then the rest of the team finished the job and threw as much content as they could in, intending for it to be the final game. There's no way we'd have gotten all these quotes from other GF staff implying it's the last game + putting stuff like the final battle with Red in etc. which signifies the end.