Yeah, that seems a it like a FF fans wet dream honestly, too good to be true. Both FF16 and Agni's Philosophy in development at the same time as FF7 Remake (not to mention 2 Kingdom Hearts games we know are in development). While it would be cool to see the Agni's Philosophy tech demo made into a game, I gave up hope of that years ago, it has been nearly 8 years afterall. 

Yeah, that seems a it like a FF fans wet dream honestly, too good to be true. Both FF16 and Agni's Philosophy in development at the same time as FF7 Remake (not to mention 2 Kingdom Hearts games we know are in development). While it would be cool to see the Agni's Philosophy tech demo made into a game, I gave up hope of that years ago, it has been nearly 8 years afterall. 

Having enough teams to do it and actually doing it are 2 very different things. Just look at this gen, they had plenty of developers this gen, but in 7 years all we got AAA wise from Square was FF15, KH3, DQ 11, and FF7 Remake part 1 (Nier Automata doesn't count as it was developed by Platinum, not Square). 

So I'm not saying that Square isn't capable of releasing like 8 AAA games this gen (FF7 Remake Part 2 and 3, KH interquel between 3 and 4, KH4, FF16, Agni's Philosophy, Nier 3, and DQ12), they certainly have enough devs to do it, but I'll believe it when I see it, Square's slowness this past gen has lowered my expectations for them in the future. 

Having enough teams to do it and actually doing it are 2 very different things. Just look at this gen, they had plenty of developers this gen, but in 7 years all we got AAA wise from Square was FF15, KH3, DQ 11, and FF7 Remake part 1 (Nier Automata doesn't count as it was developed by Platinum, not Square). 

So I'm not saying that Square isn't capable of releasing like 8 AAA games this gen (FF7 Remake Part 2 and 3, KH interquel between 3 and 4, KH4, FF16, Agni's Philosophy, Nier 3, and DQ12), they certainly have enough devs to do it, but I'll believe it when I see it, Square's slowness this past gen has lowered my expectations for them in the future. 

1 big (AAA) game per IP in 7 years is the same as other big publishers? I think not. Looking at the 7 years from 2013-2020, Activision will release 7 CoD games in 7 years. EA will release 7 games per sport, 4 Battlefield games, and 2 Battlefront games in 7 years. Ubisoft will release 7 Assassin's Creed games, 4 Far Cry games, 3 Watch Dogs games, 2 Ghost Recon games, 2 Rainbow Six games, and 2 The Division games in 7 years. Microsoft will release 6 Forza games in 7 years, 2 Halo games, and 2 Gears games. Sony will release 2 TLOU and 2 Uncharted games in 7 years (possibly 2 Horizon games and 2 GT games as well, if Horizon 2 and GT7 end up being launch titles for PS5). WB will seemingly release 3 Batman Arkham games (new Batman Arkham from WB Montreal is rumored for announce very soon and release later this year) and 2 LOTR games in 7 years. Capcom has released 3 Resident Evil games and 2 Dead Rising games. 

By comparison, Square has released 2 AAA FF games, 1 AAA KH game, and 1 AAA DQ game in 7 years, from their internal Japanese dev teams. Sadly that makes Square one of the slowest publishers this past gen at AAA development. I'm just not going to suddenly expect them to double their JP AAA output next gen from 4 games to 8 games. If it happens, great, I'll be very happy, but I'm not going to expect it from them. Better to be pleasantly surprised than disappointed I always say. 

Edit: Though to be fair to Square, their western teams have had much faster AAA output this past gen than their JP teams. Crystal Dynamics will end up releasing 3 AAA games in 7 years (2 Tomb Raider and Avengers), Eidos will end up releasing 3 AAA games in 7 years (1 Deus Ex, 1 Tomb Raider, and 1 Thief). 

1 big (AAA) game per IP in 7 years is the same as other big publishers? I think not. Looking at the 7 years from 2013-2020, Activision will release 7 CoD games in 7 years. EA will release 7 games per sport, 4 Battlefield games, and 2 Battlefront games in 7 years. Ubisoft will release 7 Assassin's Creed games, 4 Far Cry games, 3 Watch Dogs games, 2 Ghost Recon games, 2 Rainbow Six games, and 2 The Division games in 7 years. Microsoft will release 6 Forza games in 7 years, 2 Halo games, and 2 Gears games. Sony will release 2 TLOU and 2 Uncharted games in 7 years (possibly 2 Horizon games and 2 GT games as well, if Horizon 2 and GT7 end up being launch titles for PS5). WB will seemingly release 3 Batman Arkham games (new Batman Arkham from WB Montreal is rumored for announce very soon and release later this year) and 2 LOTR games in 7 years. Capcom has released 3 Resident Evil games and 2 Dead Rising games. 

By comparison, Square has released 2 AAA FF games, 1 AAA KH game, and 1 AAA DQ game in 7 years, from their internal Japanese dev teams. Sadly that makes Square one of the slowest publishers this past gen at AAA development. I'm just not going to suddenly expect them to double their JP AAA output next gen from 4 games to 8 games. If it happens, great, I'll be very happy, but I'm not going to expect it from them. Better to be pleasantly surprised than disappointed I always say. 

Edit: Though to be fair to Square, their western teams have had much faster AAA output this past gen than their JP teams. Crystal Dynamics will end up releasing 3 AAA games in 7 years (2 Tomb Raider and Avengers), Eidos will end up releasing 3 AAA games in 7 years (1 Deus Ex, 1 Tomb Raider, and 1 Thief). 

You are right that yearly stuff like EA sports and Forza being on the list is a bit unfair. The rest I listed are not copy-paste though, not even CoD, contrary to what some believe about the series (every CoD game but 1 this gen has had an original campaign, mostly original maps, and mostly original guns, very little in CoD has gotten copy-pasted this gen, most of the games have taken place in different time periods which prevented copy-pasting).

As for team sizes, a comparison to other development teams is pretty much impossible because Square doesn’t release any information about the make-up of their development divisions. The only team size out of all the Square JP teams that we know is Luminous Productions, which had 130 devs as of September 2019. We can however compare Square’s overall employee count of 4,600 as of 2019 to other publishers, and it is true that Square is smaller than the 3 big western publishers as well as Take-Two/2K, EA, Activision, and Ubisoft (EA and Activision Blizzard have about twice the employees Square has while Ubisoft has a whopping 16,000, and Take-Two is just slightly bigger than Square), but they are the biggest JP publisher, and also seem to have more devs than Zenimax (Bethesda Parent company which released like 10 AAA games this gen) and Warner Bros. Interactive.

Perhaps, but your argument that 1 AAA game per IP per gen is about the same as other developers is equally as bad, I think I showed that much. Fact is that the vast majority of AAA games are made in 3 or 4 years, and yet in the 8th console generation, which ran from Holiday 2013 to Fall 2020, 7 years, only 1 of Square’s JP development teams has managed to release 2 AAA games, Nomura’s team which released KH3 and FF7 Remake part 1. Square’s other JP development teams only released 1 AAA game or no AAA games during this 7 year gen. That is slower than average for AAA development.

You are right that Square’s JP teams have released a good many smaller AA and A games  this past gen, but it doesn’t change the fact that they haven’t released many AAA games. The other publishers have also released a lot of smaller games after all, while still managing to release more AAA games than Square did. Even ignoring western devs, Capcom pulled off more AAA games than Square this gen, while also releasing at least as many AA and A games as Square released, despite having less developers than Square.

I acknowledged that Square has enough development teams and developers to pull off a lot more AAA games next gen, and job listings suggest that they are going to try to increase AAA development next gen. But I am not going to count my chickens before they hatch. Nobody will be more happy than me to see Square release a lot more AAA games next gen, I truly hope they do, but I’m not going to expect it because that may lead to disappointment.