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FF7 is beeing worked on Unreal 4. They themselves said this.

Working with the mess that is the FFXV engine would make development take longer, not less. It's like you forget that game has been in development for 10 years.

I am hoping they are reconsidering the episodic release and are aiming for a 2018 release for the whole game. Assuming KH3 will be tgeir big title in 2017.