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At first, sometime before announcing their move to PlayStation, Square was approached by [[Sony]], who offered them to make games for their PlayStation. At first, Square was hesitant in partnering with Sony because they had a close relationship with Nintendo. Some time during the Nintendo 64's development, Square had several suggestions, such as adding a CD-ROM drive, and noted that the Nintendo 64 was not powerful enough to handle RPG titles, namely ''Final Fantasy VII''. Square's concerns were not met, so Sagakuchi and the rest of Square ceased development for the Nintendo 64 and moved over to Sony, ending their relationship with Nintendo for a long time.<ref name="polygon"/>
At first, sometime before announcing their move to PlayStation, Square was approached by [[Sony]], who offered them to make games for their PlayStation. At first, Square was hesitant in partnering with Sony because they had a close relationship with Nintendo. Some time during the Nintendo 64's development, Square had several suggestions, such as adding a CD-ROM drive, and noted that the Nintendo 64 was not powerful enough to handle RPG titles, namely ''Final Fantasy VII''. Square's concerns were not met, so Sagakuchi and the rest of Square ceased development for the Nintendo 64 and moved over to Sony, ending their relationship with Nintendo for a long time.<ref name="polygon"/>


With development having moved to the PlayStation, Square purchased hundreds of Silicon Graphics workstations and greatly expanded their team to about 150 members, which was very large for a game's development team at the time. The team purchased Silicon Graphics Onyx supercomputers and related workstations, and accompanying software including Softimage 3D, PowerAnimator, and N-World for an estimated total of $21 million.<ref name="polygon"/> The development team was split between both Square's Japanese offices and their American office in Los Angeles, with the latter team primarily working on city backgrounds.<ref>"Exclusive Preview! Final Fantasy VII". Electronic Gaming Monthly issue 82 (May 1996), pages 78–79.</ref>
With development having moved to the PlayStation, Square purchased hundreds of Silicon Graphics workstations and expanded their team to about 150 members, which was very large for a game's development team at the time. The team purchased Silicon Graphics Onyx supercomputers and related workstations, and accompanying software including Softimage 3D, PowerAnimator, and N-World for an estimated total of $21 million.<ref name="polygon"/>


One of the major events in development was when the real-time graphics were synchronized to computer-generated full-motion video cutscenes for some story sequences, including an early sequence where a real-time model of Cloud jumps on a moving train rendered by FMV.<ref name="polygon"/> The backgrounds were created by overlaying two 2D graphic layers and changing the motion speed of each to simulate depth perception.<ref>"Final Fantasy VII: An Interview With Squaresoft". Computer and Video Games issue 191 (October 1997), pages 53–59.</ref> The biggest issue with the 3D graphics was the large memory storage gap between the development hardware and the PlayStation itself, which only has two megabytes of system memory and 500 kilobytes for texture memory. The team had to figure out how to shrink the amount of data while preserving the desired effects. This was aided with reluctant help from Sony, who had hoped to keep Square's direct involvement limited to a standard API package, but they eventually relented and allowed the team direct access to the hardware specifications.<ref name="polygon"/>
One of the major events in development was when the real-time graphics were synchronized to computer-generated full-motion video cutscenes for some story sequences, including an early sequence where a real-time model of Cloud jumps on a moving train rendered by FMV.<ref name="polygon"/> The backgrounds were created by overlaying two 2D graphic layers and changing the motion speed of each to simulate depth perception.<ref>"Final Fantasy VII: An Interview With Squaresoft". Computer and Video Games issue 191 (October 1997), pages 53–59.</ref> The biggest issue with the 3D graphics was the large memory storage gap between the development hardware and the PlayStation itself, which only has two megabytes of system memory and 500 kilobytes for texture memory. The team had to figure out how to shrink the amount of data while preserving the desired effects. This was aided with reluctant help from Sony, who had hoped to keep Square's direct involvement limited to a standard API package, but they eventually relented and allowed the team direct access to the hardware specifications.<ref name="polygon"/>


By early 1997, a year after moving to PlayStation and increasing their workforce, Square completed development of ''Final Fantasy VII''.
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