Final Fantasy 7 began development in late 1995. At this point in time, the Playstation was still being beat by Nintendo both hardware wise (by the Gameboy) and software wise (by the SNES). This, of course, is based on the Japanese market, which was Square's main market based on the last Final Fantasies. By late 1995, meaning December, and not say, September, the Saturn was selling incredibly well and rivaled the SNES in software sales. So, where was the money really? Still, Sega and Nintendo.
But, of course, you're right. One of the main reasons Square Soft left for the Playstation was the fact that CDs were suited much better for FF7. In fact, to quote,
"Called "Final Fantasy SGI", the demo featured polygon-based 3D renderings of characters from Final Fantasy VI in a real-time battle and incorporated interactive elements.[61][64][65] This experiment led the development team to decide to integrate these design mechanics into Final Fantasy VII.[61] However, as a result of the high quantity of memory storage required to implement the motion data, 3D models and computer graphics effects involved, it was decided that only the CD-ROM format would be able to suit the project's needs."
So, I'd say that your post wasn't that far off. But let's read some other things...
"They left Nintendo to drag around for 2 gens and make Sony King."
Although the Final Fantasies definitely contributed, the main reason the Playstation won is a dent in Nintendo's image and an overall better library of games. So, what was the best selling game on the Playstation? Gran Turismo. Games like Tomb Raider and Crash Bandicoot also propelled Sony into success.
"This gen...it's different. Nintendo has the lead and if money talks, the Wii is here."
This generation of videogames is not as simple as some generations past. The Wii is leading in Japan software wise (assuming we're talking only about the home console market), but often losing out to the 360 in America. But, of course, Square is a Japanese company and RPGs are still a mostly Japanese focused genre.
The Wii would definitely speak to Square's strengths, but to say NIntendo is already in the lead, at least in the home market, is a tad foolish.
"Sony is getting dragged around and that will continue because HD isn't mainstream"
So, now you're some sort of sorcerer? The Xbox 360 is an HD console and it's incredibly mainstream, reporting high sales on shooter and movie based games.
I could go on, but I have to be going, so in my closing statement...
Stop with the damn Kingdom Hearts on the Wii. It's getting annoying. I, on the other hand, am a sorcerer.
*Predicts you calling me a Sony fanboy*
