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Not sure about this, but I cannot dismiss rumors such as this.

Did anyone really expect someone like Cloud to make into Super Smash Bros.?

And with Square being very supportive so far with Nintendo with the Switch and with the 3DS, there is a possibility. When it comes to graphics, I'm not sure since I don't know how much FFVIIR is using in terms of power based on the footage we've seen so far.

And for those saying this may not come as a big deal in terms of advertising, this will be (if confirmed) the first FF mainline game on a Nintendo home console in years (not counting the DS remakes) and the first post-VI FF mainline game! Prior to the PlayStation, FF (and Square) was a big part of the early Nintendo consoles. Having a game with such prestige can really help Nintendo (at least when it comes to Japanese third-party support). Having Mario, Zelda, Fire Emblem, Xenoblade, Splatoon, ARMS, the potential for a new mainline Pokémon, Metroid, Smash Bros. etc., and with support like FF, DQXI, a new No More Heroes, Street Fighter, Bomberman, etc., this could really boost the Switch's library and go far beyond the lengths the Wii U's library (especially in the first two years) ever could.

Edit: Look at reactions to Cloud being in Smash Bros. So many people were surprised and shocked that this was possible.