This is fron NEXT Generation Online:

Square FAQ Answers Your
                 Questions

The Square story on PlayStation development
(which Next Generation Online broke over a month
ago) has attracted some wild and even absurd
speculation. Here then is the definitive
'confusion-busting' FAQ on the question which has
set the game industry alight. 



        Is Square now exclusively linked to the
      PlayStation? No. This is an error. Its games will
      not released for the Ultra 64 itself but Square
      is privately saying that it may well come in
      when the Bulky Drive is established. A foray
      into PC publishing is also thought likely. Saturn
      is an outside bet right now. 

        Nintendo and Square go back a long way. Why
      have they fallen out? 

      The division is not as acrimonious as the
      tabloid sites would suggest. The size and cost
      of developing state of the art RPGs make
      cartridges economically difficult especially in
      an unknown market like the Ultra 64. These
      games will cost a good deal more to produce
      than SNES RPGs because of the pressures on
      graphical excellence and AI. Therefore CD
      based systems make more sense right now. If
      Ultra 64 grows a massive user base quickly, or
      Bulky Drive becomes viable, they will soon be
      buddies again. 

        What will be the first games for PlayStation? 

      Final Fantasy VII is obviously the favorite but
      don't expect to see that until very late this year
      or possibly early in '97. However, Square has
      not yet made an announcement on its release
      schedule and there is still some internal debate
      on the right track to follow. An announcement
      is due within the next four weeks. It's possible
      that the first PC game will come out before the
      first PlayStation game.