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=== Squaresoft and the "Big N" ===
In 1994, Squaresoft released Final Fantasy VI in Japan through an exclusive contract with [http://web.archive.org/web/2015070508184220170707202316/http://www.nintendo.com/ Nintendo]. The game was for the Super Famicom, or more internationally known as the Super Nintendo Entertainment System. This game was a massive best-seller, and the powers that be decided to have the game "cross the pond" as it were for the U.S. audiences.
Sadly, as Nintendo had exclusive distribution rights to all games in the United States, the decision was made to alter the game. The traditional Final Fantasy logo was changed to one American audiences were more used to. The sequel number was also dropped from VI to III. Nintendo had only released two Final Fantasy games in the states. Part I for the NES, and Part IV for the SNES (Part IV was actually going to be a NES game, but was ported up in the middle of it's development. That, however is another story). The game was also edited for content. Several silly things like a programmers room and a porno book were removed. All in all the sales were modest, but it was nowhere near the success that the game enjoyed in Japan.
Nintendo went behind Sony and asked Phillips for assistance, as they also could license CD-ROM technology. When Sony found out that Nintendo was going to someone else, (and a foreign one at that!), it was the last straw and pulled their technology. They also convinced Phillips, Matsushita, NEC, and Pioneer not to license any optical drive technology to Nintendo either.
Going alone, Sony decided to take their popular System 11 arcade boards, tack on a CD-ROM and called it the Playstation. You can read about that story in my PSX technical manual [[http://web.archive.org/web/2015070508184220170707202316/http://www.zophar.net/tech/psx.html http://www.zophar.net/tech/psx.html] "Everything You Ever Wanted to Know About the PSX But Were Afraid to Ask"].
Nintendo, without a drive system, quietly disclosed to their third parties that the Ultra 64 was going to be cartridge based. The maximum limit that any game could be was 32 megabytes. Squaresoft was now in a bind, they had invested millions of yen into creating a movie-like RPG experience and now had to cut it down to fit on a cartridge. When it was revealed that the PSX would also be using a MIPS CPU, Square abandoned Nintendo and gained an exclusive distribution contract with Sony. The groundwork for Final Fantasy VII was now laid and could continue unobstructed.