It seems that a Xevious remake was planned to be released in 2002 for the Playstation 2 by Team Aces, using the Ace Combat 4 engine, to celebrate the 20th anniversary of Xevious. The project was canned to shift time and resources to work on Ace Combat 5. A video of the Xevious PS2 prototype was shared online by Team Aces. There are some more info on Kotaku japan, if you are able to translate the page, please let us know!
Thanks to Brian Brady for the contribution!
U64 is an archive with articles, screens and videos for cancelled, beta & unseen videogames. Every change & cut creates a different gaming experience: we would like to save some documents about this evolution for curiosity, historic and artistic preservation.