The technical demo was made by the same team that went on to develop Final Fantasy XIII, with Motomu Toriyama as the director. Final Fantasy XIII was initially planned for the PlayStation 2, but the team working on it was derailed to make the Final Fantasy VII technical demo; the results for the Final Fantasy VII technical demo were so good that the development of Final Fantasy XIII was moved to the PlayStation 3 platform once its full development resumed.
Cloud's eyes are notably green in the technical demo instead of their usual color of blue.
When it was released, many fans saw this as a hope for a total remake of Final Fantasy VII. Square Enix denied this. In 2014, nearly a decade later, Yoshinori Kitase commented on it, by saying he didn't regret having made the demo despite the endless remake rumors it sparked, as "it was the right thing to do at the time".