Both sides had flaws that affected the long-successful relationship. In the end, it is what it is. Nintendo had two struggling home consoles after the SNES (but remained dominant in the handheld market in which their profits/revenue weren’t badly affect unlike Sega) and Squaresoft released FFVII on PS1 to incredible success (which almost got undermined when Square got too ambitious with the multimedia projects that left them in really bad shape before the merger with Enix).
Fortunately, both sides made up and FFVII (along with a butt load of other FF games) finally released on a Nintendo console after over 20 years and Cloud had his legacy immortalized in Super Smash Bros. for Wii U/3DS and Ultimate, even if the content beyond Cloud was...minimal at best. Hell, Nintendo gained some exclusive content from SE in recent generations.
Where will things go from here, who knows. Maybe one day FFVII remake will release on a Nintendo console. Or maybe not. Hopefully, Nintendo and SE will continue to garner great success in the short and long term future.
