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Darc Requiem said:

Final Fantasy VII had a prendered backdrop/polygonal character graphical style that was predated by Resident Evil. In addition to doing it first, Resident Evil just did it better. Resident Evil released in 1996. Unlike FFVII, the character models in Resident Evil were actually good for the time. FFVII had "Popeye" armed monstronsities on the overworld. The battle scenes only ran at 15fps and featured models that lacked texture maps and were merely gourad shaded or flat shaded.

How can a game that launched a year after Resident Evil with half the frame rate and less detailed models have "insanely good" graphics for the time? FFVII had substandard graphics and sound for the time. The MIDI audio files on FFVII, despite being on 3 CDs, had a lower sample quality than the MIDI audio of FFVI. FFVI was on a 3MB cartridge. That's 1/600th of the capacity of 3 CDs. 

One, it was still better than most games at that time.

Two, the graphics exceeded the graphics of previous Final Fantasy games.

Three, Final Fantasy VII is a bigger world than Resident Evil, meaning they are trying to fit a lot more into the game than Resident Evil was. The fastest Final Fantasy VII speedrun was approximately 8 hours, and the fastest speedrun with 100% completion was approximately 24 hours and 17 minutes. Compare this to Resident Evil where the fastest speedrun was under one hour, and the fastest speedrun with 100% completion was approximately 4 hours.

For the size and scope of this game they were damn good graphics.