24 Years Later, Final Fantasy Is Still Haunted By 1 of Gaming’s Weirdest Choices

n 1987, struggling game developer Square released what it thought would be its last title: Final Fantasy. Square hoped the RPG would help the company leave behind a legacy, but things wound up working out better than anyone could have realized.

In the high-stakes world of video game development, few franchises loom larger than Final Fantasy. Launched in 1987 by a desperate Square as its potential swan song, the series exploded into a cultural juggernaut, selling over 190 million units worldwide and defining the JRPG genre. From the pixelated knights of the original NES title to the sprawling epics of modern consoles, Final Fantasy has captivated generations with its blend of fantasy, innovation, and emotional storytelling. Yet, nearly four decades in, the series remains shadowed by one colossal misstep: the 2001 film Final Fantasy: The Spirits Within. Released 24 years ago this month, the movie didn’t just flop—it triggered a crisis that saw creator Hironobu Sakaguchi walk away, nearly derailing the empire he built.

The story begins in the late 1990s, a golden era for Square. Final Fantasy VII (1997) shattered records, becoming the best-selling RPG of all time with over 14 million copies sold, thanks to its groundbreaking 3D graphics, cinematic flair, and iconic characters like Cloud Strife and Sephiroth. The PlayStation’s CD-ROM format allowed for full-motion video (FMV) cutscenes that felt like Hollywood blockbusters, fueling dreams of crossing into live-action—or rather, fully CGI—territory. Square, riding high, eyed expansion beyond games. Sakaguchi, the visionary behind the series since day one, spearheaded the charge into film.

Announced amid FFVII‘s hype, The Spirits Within promised a photorealistic CGI spectacle branded with the Final Fantasy name. Directed by Sakaguchi and Moto Sakakibara, it featured an original story set in a sci-fi apocalypse: ethereal alien “Phantoms” overrun Earth, and scientist Aki Ross races to harness eight spirits to save humanity. Voice talent included Ming-Na Wen, Alec Baldwin, and Steve Buscemi. Production kicked off around 1997, ballooning to 200 staffers and four grueling years. The budget? A staggering $137 million—roughly half of Square’s total assets at the time, equivalent to over $250 million today adjusted for inflation.

For context, this dwarfed contemporaries. Pixar’s Toy Story (1995) cost $30 million; Final Fantasy VII‘s development was a mere $40-45 million. Square bet the farm on pioneering full-human CGI, ditching the series’ fantasy roots for hard sci-fi. No Chocobos, no summons—just Phantoms and spirit energy. Fans hoped for cameos from beloved characters, but got none. Trailers wowed with lifelike humans, but whispers of scope creep emerged.

July 2001: Premiere. Critics were mixed. Roger Ebert praised the visuals (“a milestone in computer animation”) but panned the plot as “incoherent.” Box office? Catastrophic. It grossed $85 million worldwide against that $137 million budget—losing $52 million directly. In North America, it earned just $26 million on a $93 million print-and-advertising push. Theaters sat half-empty; word-of-mouth tanked it further.

Square reeled. The flop exacerbated financial woes, forcing a merger with Enix in 2003 to form Square Enix. Sakaguchi, blaming the failure for the company’s near-bankruptcy, resigned as president in 2001 and left entirely by 2003. “I take full responsibility,” he later said, dubbing it his “Spirits Within folly.” He founded Mistwalker, creating hits like Lost Odyssey (2007), but never returned to Final Fantasy‘s helm.

The ripple effects lingered. Square Enix shelved film ambitions for decades—no Final Fantasy movies followed until minor CGI shorts like Advent Children (2005), a direct FFVII sequel that succeeded by sticking to canon. Kingsglaive: Final Fantasy XV (2016) faced backlash for sidelining game protagonists. The studio’s CGI tech advanced (Kingdom Hearts cutscenes), but branded films became toxic.

Why did it haunt the franchise? Creatively, Spirits Within alienated core fans. No ties to Final Fantasy‘s medieval fantasy—dragons, crystals, espers—yielded a generic alien invasion flick. “It felt like a different IP,” one fan forum post from 2001 lamented. Technically groundbreaking (first photoreal humans in a feature film), it aged poorly; today’s viewers note stiff animations and dated effects.

Financially, it scarred Square Enix’s risk appetite. Post-merger, the company chased mobile games and MMOs (Final Fantasy XIV‘s rocky 2010 launch echoed early mismanagement). Mainline entries slowed: FFX (2001) to FFXI (2002), then a three-year gap to FFXII (2006). Sakaguchi’s exit meant no unifying vision; directors rotated, leading to polarizing shifts like FFXIII‘s linearity (2009).

In 2025, echoes persist. Final Fantasy VII Rebirth (2024) thrives on nostalgia, grossing over $1 billion in the trilogy so far, but faces scrutiny for narrative tweaks—Whispers preserving “fate” amid multiverse teases. Sakaguchi’s Mistwalker games nod to classic FF (turn-based combat, emotional tales), underscoring what was lost. Recent X discussions revive the flop: “Square’s dot-com bubble,” one user quipped, linking it to modern gacha reliance.

Yet, positives emerged. Spirits Within pioneered motion capture and CGI humans, influencing The Lord of the Rings and Pixar. Reappraisals call it “underrated sci-fi,” a “lost FF game” with Paradigm Shift-like battles. Sakaguchi rebounded; Square Enix stabilized under new leadership.

Today, as Final Fantasy XVI (2023) sells 4 million and remakes like FFVII Rebirth dominate, the series endures. But The Spirits Within warns: even titans falter on hubris. Square’s weirdest choice—betting the house on Hollywood dreams—nearly ended it all. 24 years on, it’s a ghost in the machine, reminding gamers and execs alike: stick to what you know, or risk the Lifestream.