I've always heard the opposite.
Xenogears/Xenosaga/Xenoblade are spiritual successors made by some of the same people which share some similar themes, but are not canonically linked.
It's basically goes:
1. Guy makes Xenogears. Plans it to be a big franchise, but Square decides they don't want to make any more, but still owns the property.
2. Guy goes to Namco, starts a new series, Xenosaga, which is TECHNICALLY not the same series, but is meant to feel like it's the continuation of the old franchise. Then after a few games, Namco decides they don't want to make any more, but still owns the property.
3. Guy goes to Nintendo, starts ANOTHER new series, Xenoblade, which is technically not the same series but feels like the continuation of the old franchise.
Guy is just really invested in making this series happen, but keeps getting screwed by not owning his own IP.