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A user in neogaf explained the undertaking of this remake quite simply:

"Think about it.

When a town was a tiny room (a pre-rendered jpeg) that you could walk across the entirety of in 5 seconds, it now needs to be a full 3D environment with the scope that we would really believe is a town.

When a cutscene was 5 polygons and 10 dialogue boxes that you could mash through in 30 seconds, it now needs to be a 5 minute, fully voiced, 3D modelled real time animation.

When a battle was a cut to the same generic "factory" background with less polygonal detail than one strand of Lightning's hair, it now needs to be a unique full 3D environment set piece with spaces to allow for combat interactions that feel satisfying in the modern context.

Making FFVII with modern detail means inflating the size of the game significantly. If people don't yet understand that... think it through."