News has been burning our ears for some weeks now that seemed unbelievable – too good to be true. We were told by several different sources that Square Enix was underway with a Final Fantasy VII offshoot, carrying the tentative name Final Fantasy VII Gaiden.

And it turns out to be true!

Called Final Fantasy VII: Advent Children, the game is a classic RPG set in the FFVII world in the time after the original game had concluded.

It is thought that the game will be completely overhauled with PlayStation 2 graphics replacing those found in the PSone original, not merely using the original engine and graphics as expected.

Other interesting gossip points towards a possible Xbox release. Indeed, SE stated that the game will be released on DVD, though at time of going to press, has refused to commit to a platform. It might be a movie, or interactive DVD, perhaps using the Nuon platform.

More on this most interesting of news, right here, as it breaks.