Do you think SE realized what they were doing or do you think they are really that oblivious?

It's really hard to tell, but personality traits suggest that they're completely oblivious and/or high: 

https://www.youtube.com/watch?v=WH6UMTcuau4

https://www.youtube.com/watch?v=7hUORx5T5Rg

It's like they're as spaced out as their characters are in a conversation.

What do you think?

I think they legit thought this is what people wanted

Jesus, they are sooooooooooooo pretentious. There's probably a gold statue of Lightning in the middle of the offices surrounded by white candles so the wax can hide the cum.

"I WANNA MARRY LIGHTNING! - Olivia from Bolivia"    LOL

I think they're in for the money, that's all. Quick and easy cashgrab.

Well... Its essentially either SE just wanted to troll people or Sony begged them to announce something at the PsX regardless of how good or bad it is and SE didn't really have anything good to show

It's a straight port of FFVII for PC; clearly not what anyone asked for.

Not sure why this warranted a PSX announcement, but there you have it: FFVII on PS4.

This brings up something else; if Sony did want SE to announce something at this 20th anniversary Playstation showing, they must have known what it was.  Or if not, they might be PO'd now.

A bit of both, Se is deluded and has been for a while.

They know what people want, but are afraid to try and do it.

Square is completely out of the touch with the consumer nowadays. The fact that Tomb Raider didn't meet their sales expectations is a clear example of that.

So I think they really were that oblivious.

Yeaa, from what I can tell, Sony seems to prefer quantity over anything else in these press conferences cause they announce a lot of things and talk about a lot of things but only a few ever announcements seem to be exciting while the rest is a snorefest or trolling or just 5 seconds of something that should have lasted way longer (Persona 5) imo