That does not mean each will be a 40 hour RPG. That just means the content will take up a full disc. That is literally all it is. Each entry could be 10 hours long, and they could consider that a "full sized game". Until they are far more specific, people should really keep expectations in check about how much content, especially when they stated in their initial interview that they wanted to make the game so detailed, the only path was splitting it into multiple pieces just like an episodic release.
That statement is SE damage control, purposefully vague, and lacking in any real commitment to content past "if we consider it a full game, we did good enough."
They didn't say each entry will take up a full disc (though, to take up a full blu-ray, a game would need a LOAD of content).
What they did say is that each experience will have its own unique story. Each game will provide a different perspective.
You know what this sounds like? A bunch of standalone games. Because episodic, by its very nature, tells a single story across multiple episodes. What they are essentially talking about here is a franchise of FF7 games.
I mean, this is supposed to be a REMAKE of FF7, right? Was that made up of a bunch of unique stories from different perspectives? I'm pretty sure it was just one, long tale told from the point of view of Cloud Strife. It looks like we'll just be getting sequels/spin-offs that tell the game's story from other perspectives, or tell completely different stories all together within the same world. There isn't much here that suggessts that it will be episodic, or lacking in content. The latter is certainly POSSIBLE, but in regards to the former, the Mass Effect trilogy is more episodic than anything Square has suggested for their FF7 games.
Has Square ever actually said the words "episodic" to describe their FF7 strategy?