This article is from the Final-Fantasy and other Square Soft Games FAQ, by firstname.lastname@example.org (Nick Zitzmann) with numerous contributions by others.
The simple answer: Not likely.
Sony has been bugging Nintendo about data storage on CD-ROMs compared to
the "game pak" and magnetic-optical drives Nintendo uses. CD-ROMs have a
limit of about 650MB of data, while Nintendo's MO drive with game
cartridges will only store up to 65,535K of data.
When Sony's Phil Harrison made this argument against Nintendo at the E3
expo in the summer of '97, he used an example: Final Fantasy VII. FF VII
uses about three CD-ROMs and would weigh in at 1.8GB of data (if every
CD was full), much of which was full-motion video. There's no way that
any Nintendo system could cram that much data into one game, unless
Nintendo took up either CD-ROM or DVD-ROM technology in the future.
George Harrison (no, not that George Harrison) of Nintendo's response:
He didn't care about Final Fantasy VII, because, according to him, "most
of their [Nintendo's] customers wouldn't want/appreciate such a slow and
tedious game such as Final Fantasy VII."
That's not the only reason why Square dropped Nintendo, though. The two
companies had a very long and turbulent relationship. For more
information, take a look at this URL:
Some time in early 2001, Final Fantasy creator Hironobu Sakaguchi
announced that he would like to remake Final Fantasy IV through VI on
the Game Boy Advance, but Nintendo president Hiroshi Yamamuchi told the
press that this was not going to happen.