Nomura comments:
"It appears that there are often overseas rumors like 'Are you currently developing a VII remake?' My apologies, but were absolutely not making [such a game]."

However, maybe there is light at the end of the very dark tunnel for all of you who are eager for such a game. Yoshinori Kitase, overall director of the FFVII series, had this to say:

"However, when we ask the staff who are making FFXIII why they entered the company, there are many people who say, 'I'm an FFVII fan, I also want to do a remake.'"

Nomura added to this:

"We of course know ourselves what the fans want so we'd like to continue thinking up a variety of things. As long as there are people who want to make it and people who are waiting for it, we don't want to proclaim 'the end.'"

So a flat out denial with some back peddling!

Nomura and Kitase also talked about FFVII and how it could have turned out very different according to an early game plot Hironobu Sakaguchi had made which Nomura claims to still have:

"I think he wanted to do something like a detective story? There was a character called Hot Blooded Detective Joe."

The Midgar city was already in place at this point. The early part of the story that was written by Sakaguchi involved Detective Joe chasing after the main characters, who then blow up the city.

Source: IGN & FFExtreme

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