We know for sure that Xenogears was once Final Fantasy 7, but there's another rumor going around saying it was Chrono Cross 2.
From the Japanese Chrono Cross entry on Wikipedia:
"Chrono Trigger 2" and "Xenogears"
Xenogears originally began its planning and development as Chrono Trigger 2; after Xenogears was done being created the team regathered to make a sequel to Chrono Trigger, and the Chrono Cross team had a lot of the same staff as Xenogears. As a result, the game has many similarities, and the style of battle system is a sort of evolution of that in Xenogears.
Also, in the demo movie of Xenogears this line is used:
"So let love's blood flow! Like the seas of hell, it runs red and deep...!"*
This line does not appear in Xenogears' script, but was later used in Chrono Cross' script.
Furthermore, Lucca, a character from a previous game, appears in Xenogears as a guest, whose last bonus line makes a reference to the Silbird** and such.
*Translated as "Now, let love bleed! Darker and deeper than the seas of hell!" and uttered by Lynx in Chrono Cross.
**Epoch
The above translation was done by Andrew Vestal, who co-wrote this article a good 12 years ago.
Now, after much searching and with the help of Mako from Xenogears-Fansite a page full of demo videos, including the one in question, has been found. The line appears about 1/3rd of the way through this video, when the red Transformer-like face appears on the screen.
Does anyone have other proof of this theory?
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