I don't agree with that, it took a ridiculous 100 million dollar marketing budget for FF7 to become what it was.  Nobody else would dare do that, still RPGs would have growed in popularity, probably slower but it would probably reach where it is now.

The question isn't whether FF VII was made or not. The question is what would have happened had Sony not effectively marketed the game as deceptively as they did, featuring all CGI shots in both commercials and in gaming magazines and comics. The front and back box art showed no in game footage, only CG. There has never been a game more effectively marketed as a graphical powerhouse in the history of gaming. FF VII could have still been made, Sony could have marketed in-game footage, and the genre would have never picked up the way it did.

I can't seem to find the advertisements on Google Images, but I have comics from 1997 full of them. I can get pics up later for those that don't know about FF VII's epic marketing campaign. Otherwise I'd appreciate anyone that knows where they are on the net to post them up.

first off there was no JRPG/WRPG sub genre's back then like there is today. Back then the RPG genre was a whole single unit and FFVII brought that entire genre into the mainstream spotlight. So without it ALL RPG's would be niche today

WRPGs were pushing the same 2.5-3 million they still push today, and that goes as far back as the original Diablo in 1996, so no I can't agree with you on there. I don't believe the western RPGs on the PC were directly affected by Final Fantasy VII's success.

Sales would be lower in the west and therefore devs would stop all this bullshit catering to western audiences shit :)

There would have been another game eventually made kind of like it. It would have delayed the popularity of the series and RPGs though.

Hmm... without the huge hype and marketting of FF7, yes, the RPG market would be smaller today, both in terms of fans and number of games. However, the quality would be considerably higher, as the companies would be more in-tune with what their base wants. Personally, I think we'd see more games of Atlus calibur. There wouldn't be this huge graphics-fest to try to pull in others; attempts at that without a marketting of FF7's level would be met with disaster.

Admittingly, it probably also means that a few series would never exist. Yes, we would lose those, but I'd also hazard a guess that the ones we would lose would also be the ones that didn't look at what made a good RPG, and really, wouldn't be missed.

Well I can't assume everyone would make the same choice. How ever when it comes to facts, what cannot be disputed is Phantasy Star 1 was ahead of its time. It had female lead character, cinematics, 3D dungeons, and multiple worlds. Keep in mind that PS1 was a third generation 8 bit RPG.

I'll ask you this. From a innovation standpoint what did FFVII do first? Polygonal characters over rendered backdrops had already been done by Resident Evil. FMV Cinematics? RPGs have had those since the PC-Engine/Turbo CD rpgs began releasing in the late 80s, early 90s. Those games, along with the few Sega CD Rpgs that released also featured voice acting. As Onyx mentioned already, the only thing FF showed is that with heavy ad campaign, JRPGs can sell in the West. Too bad Namco still hasn't gotten that memo...