Square also shunned the Nintendo 64 because the system's memory and the price of cartridges made it far more feasible to make CD-based games on the PlayStation. Consider the Square games that don't use FMV extensively: Threads of Fate, Einhander, Ehrgeiz, Bushido Blade, the Tobal games, and so on. If FMV was the only factor in Square rejecting cartridges, the company would have hosted a few games on the Nintendo 64.
They didn't. Politics played some role in this, but Square also thought there was no profit, creative or financial, to be made on the Nintendo 64. Like the majority of developers, they realized that the cartridge format was a moribund money-sink for console games.
And yet most of the early PlayStation RPGs don't use FMV extensively: Suikoden, Arc the Lad, Wild Arms, and Persona all have very limited FMV sequences. Only Final Fantasy VII heavily integrates them. Later games, made well after the PlayStation dominated the market, use FMV more often, but it's still prevalent mostly in Square titles. In fact, Dragon Quest VII, the other big Japanese RPG of the PlayStation era, doesn't have many video sequences.
JRPG developers, like many other developers, went to the PlayStation because it was cheaper, it was easier to develop for, it offered better music/video/voice integration, and it wasn't hopelessly tied to fading, obsolete cartridges.







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