Final Fantasy VII Remake is not in some development hell as most fans are assuming, this is according to Tetsuya Nomura, the game director of Final Fantasy VII Remake.
In a recent interview to commemorate the launch of The World Ends With You Final Mix Remix on the Nintendo Switch, Nomura talked about Final Fantasy VII Remake in a way that gave the wrong impression. He simply said that he was working on Kingdom Hearts 3 at the moment and once he will be done with it, the focus will shift to Final Fantasy VII Remake. This gave fans the wrong idea of the game not being in active development.
Today, it was reported in a Famitsu interview (via) that Nomura has clarified his comment. In this new interview, Nomura has stressed that the game is not on hold and the development is actually progressing well for it. He was pointing towards his comment that he made at E3 where he said that the development was going well for the Remake. He also clarified that right now Square Enix PR has Kingdom Hearts 3 as their first priority but once they will release it, the focus will shift to Final Fantasy VII Remake.
Final Fantasy VII Remake was originally announced at E3 2015 and then later followed up with a gameplay reveal at PSX 2015. It was supposed to be an episodic release to get the games out faster, but it remains to be seen if these original plans still remain after the development was shifted from CyberConnect2 to in-house for Square Enix.