No he didn't, he offered a lie as an excuse.
His PR team are stupid and at this point I don't think he has full control of his "personal" X account.
Final Fantasy VII Revelation's director has offered an explanation for why the physical disc version requires a download to play: bit.ly/3SGGCg2
Sep 14, 2026 · 8:29 AM UTC
Yeah he is obviously coming up with bullshit excuses and people want to dickride. Same happens with Nomura with Kingdom Hearts. They don't realize they're giving excuses for business decisions. If Part 1 and 2 are full on disc so should 3 be. It's not favorable to consumers.
His options are probably charge more for the game, lose some profit, or reduce quality and fidelity like he said. This is being released on Xbox now which holds half as much data as PlayStation. So 3 discs on PlayStation is equally to 5-6 on Xbox. That's a much bigger cost.
Switch 2 version of this game is sitting at 130 Gb. It's likely bigger than Rebirth, and they could maybe go with three discs, but that would increase the production cost, or they could have gone with the Rebirth route and reduced texture, unique details, animation, and everything else.
At the end of the day, the demo's quality will decide if they were telling the truth or not.