I completely agree with you guys, an FF7 remake is a no-brainer. Here's the best way for Square Enix to handle it-- Say to Sony "We'll do an FF7 remake, exclusive to PS3... but only if you pay for the development of it and give us a better percentage of profits than normal on it's sale. If you don't want us to do it, that's fine... we'll go ahead and port FF XIII to 360."
I'm pretty sure that's the main reason why they won't remake or produce a sequel. Under one of the MANY rumor forums I've read on this topic (as I'm sure you all have) over the years, on one of them I stumbled upon a press release by Square-Enix some one had linked or cut and pasted. I can't remember the particulars, but to some affect Square-Enix had no plans at this time to do a remake or sequel.
They felt that the original was just that, original with a one of a kind story line, and to remake it would take away from what we all loved about it. And I totally agree with them on that. The original, although done during a time where it's graphics were top notch, by todays standards falls very short of impressive. But it was the story and characters that made the game so likable for me, and it doesn't matter what gen console your using, it doesn't take polished graphics and hdd's to write a good story.
With that said, I think a sequel to FF7 on the PS3 would be an awesome idea! You maintain the original for what it is, a classic, but get the opportunity to play with ideas you had the first time, but never introduced or were limited by the console of the time. However, again I believe I read some where's the Square-Enix is unwilling to persue that idea as well for fear that a) only fan boys of the series will be interested (which is bull, because FF titles sell by the fists full, so anything with the FF name it would sell, especially), and b) if it didn't live up to what the original gave (which was a lot) they were fearful of the negative responses.
So I think we need to get Square-Enix to just "suck it up". Take a risk, look back at the great staff/team that made the first, take a good long while and develop a solid story/cast of characters, and try not to just "wow us" with pretty next gen graphics.
Nothing square has done since FF10 in my opinion is worth the glue that holds it together... even 10 was so so in my book. They need to grow a set and re do FF7 for the PS3... it will sell more then a few thousand copies for sure.
The development wouldn't be that expensive at all when you consider the games engine is very simple and already designed... its more or less a port and polish of the old game.
And at this point not much anyone besides a fanyboy owns either a PS3 or a 360... its not in the price range of anyone other then the enthusiast.
What i think is that sony is not being very smart towards the final fantasy series "wich is a top selling game", they go and release the ps3 way to early and release all crappy ported games then they start selling downloadable ps1 games that u can play on your psp AND your ps3 and do they offer the best ps1 had to offer??? no they picked the crappiest ps1 titles ever and release them sooo slowly!! Now what i wonder is WHY in the world would sony not offer final fantasy 7 for download "wich would guarantee sell off the charts" when they are struggling with sales, also they could release final fantasys 8 and 9 also wich would do really well for psp and ps3 sales not to mention the countless awsome rpg's made by square in the ps1 era. I dont know but this just makes no sense to me at all especially when sony needs that much needed boost in revenue.
One last thing i want to ask the final fantasy community is dont u think that with each passing final fantasy game they are getting less and less good? For instance when ff7 came out it was awsome then ff8 and ff9 were awsome as well then came the ultimate final fantasy of ALL time wich was ff10!! That game was pure awsomness especially the battle system wich was still turn based and every other aspect of that game, then square got the big idea to fix something that just wasnt broken and released ffX2 wich started to stray from the previous 10 entries game physics and started to make things semi real time wich was still decent but just not as good as ff7 or ff10 and the turn based system,and i thought square would realize this mistake and find out that trying to bring in battle physics wich made some of there other games "like star ocean" succesfull and take out the things that made final fantasy such an awsome game and unique game!
After i thought things couldnt get worse for the series they come out with final fantasy 12! Sure the game had the good ff story and the awsome cut scenes and the whole ivalice thing but without the turn based battle and the whole real time battle rely on your gambit system took that spark away that made the game what it was and in my opinion ruined the whole series!! Sure it is better than most of the rpg's being made but is just not the same, and now that the ps3 is out and we cant wait till the newest final fantasy comes out, it is just going to be real time again and i just dont think it will be good! I think square and sony should realize all this and think about their companys and fix this!