It's not about fitting it, of course it can through multiple discs and digital downloads. The issue is how much it costs.
Back when FF7 came out, it cost $45 million (67 million with 2015 inflation) to make and that's just development excluding the marketing budget. If they're not going to cut anything or reduce the production level (it is likely to look as good as that, play the XV demo and you should see it there too), it's going to cost a magnitude higher to make. You're looking at least GTA V level budget and as big as FF7 was, it'll never touch that number of sales, especially with the state of the Japanese video game market with how mobile has taken over there.
The cost is the reason that 10 and 13 were corridor based games and cut the open maps and vibrant towns, they just didn't have the budget to do things like that in HD. IF they do this right (and that's a big IF) with an open world map, all the varied enemies, chocobo breeding, golden saucer and airship/submarine, then it's worth it and probably required to make a profit.
I'm still totally open to modern square fucking this up, I just don't think this is the reason for it.
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