Why is Logan is the last movie of this franchise starring Hugh Jackman?
Is there any chance of him appearing in a future X-Men movie, or even a guest appearance?
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Two (or three reasons):
Wolverine's story is pretty much done - as is the X-men. Good chance is that the next X-men movies will be a reboot, or part of other continuities currently underway.
Jackman is also getting tired of the role (not necessarily fed up, but he's done 8 or 9 movies as Wolverine, now).
Finally, Jackman is getting older. The role is physically demanding. One aspect of the last movie was that Wolverine is finally succumbing to aging - partly to ease up on the physical demand on Jackman to shape up for the role.
Jackman explained this in an interview on the Dr. oz show in 2015.
It just felt like it was the right time to do it. And let's be honest, 17 years. I never thought in a million years it would last, so I'm so grateful to the fans for the opportunity of playing it. ... I kind of have in my head what we're going to do in this last one. It just feels like this is the perfect way to go out.
Before the release of Logan, he had mentioned that he would have considered continuing if he could have crossed over with the Avengers.
If [an Avengers-crossover] was on the table when I made my decision, it certainly would have made me pause. That’s for sure. Because I always love the idea of him within that dynamic, with the Hulk obviously, with Iron Man but there’s a lot of smarter people with MBAs who can’t figure that out. You never know.”
Whether or not this is still on the table for him is unclear.