I'm looking at these 3 lists with the main plot points of each CD, right now, trying to divide it in 3 parts with
death being the finale of the second part. Disc 3 in the original is ultimately just the last dungeon and remaining sidequests and stuff.
http://jegged.com/Games/Final-Fantasy-VII/Walkthrough/Disc-1/
http://jegged.com/Games/Final-Fantasy-VII/Walkthrough/Disc-2/
http://jegged.com/Games/Final-Fantasy-VII/Walkthrough/Disc-3/
Maybe let Part 1 end at being thrown into Corel Prison? Though, it might be too much for one game until then. So maybe until the boss battle on the ship ride from Junon? This way it would end on a big battle and you'd have enough locations to fill one game if you flesh out Midgar and the overworld parts to pad out the game a bit. They probably want a ~25h main story per game. So like this roughly:
Part 1:
Midgar
Including Sector 1, Sector 8, Tifas 7th Heaven and the No. 5 Reactor.
Sector 5 Slums
The meeting in the Church and Aeriss House.
Wall Market
Gaining entry into Don Corneos Mansion and the Honey Bee Inn.
Sewer and Train Graveyard
Traversing through the Sewer, Train Graveyard and the battle at the Sector 7 Pillar.
Sector 6
Back to Aeriss House, through the Wall Market and ascending the Plate Section up to the Shinra Building.
Shinra Building
Floors 59 through 70 and the motorcycle chase.
Kalm
Including the flashback scenes in Nibelheim, the Shinra Mansion and the Mount Nibel reactor.
Chocobo Farm
How to capture a Chocobo, cross the swamp and avoid the Midgar Zolom.
Mythril Mine
Crossing paths with the Turks.
Junon
The town under Junon, the parade and sneaking on to the Cargo Ship.
Cargo Ship
Traveling from Junon to Costa del Sol.
Costa del Sol
Arriving off the Cargo Ship on the way to Mount Corel.
Part 2:
Mount Corel
The Corel Reactor, Mount Corel and passing through North Corel on the way to Gold Saucer.
Gold Saucer
The first trip to Gold Saucer.
Corel Prison
Getting thrown into the Corel Prison after the massacre at Battle Square.
Gongaga
Traveling to the ruined reactor and Gongaga Village.
Cosmo Canyon
The first visit to Cosmo Canyon including the Cave of the Gi.
Nibelheim
Returning to Cloud and Tifas home town as well as the Shinra Mansion and Mount Nibel.
Rocket Town
Meeting Cid and escaping in the Tiny Bronco.
Gold Saucer
Traveling through North Corel, retrieving the Keystone and the Date Scene.
Temple of the Ancients
Retrieving the Black Materia and meeting with Sephiroth.
Bone Village
Including how to dig up the Lunar Harp for the Sleeping Forest and traveling through the Corral Valley.
Forgotten Capital
The Forgotten Capital, Forgotten City and the end of Disc 1.
Part 3:
Forgotten Capital
The Forgotten City and the Corral Valley Cave leading to the Icicle Inn.
Icicle Inn
Traveling from the Forgotten Capital and snowboarding into the Great Glacier.
The Great Glacier
Where to find all of items and Materia hidden throughout the Great Glacier and the path to the Base of Gaeas Cliff.
Gaeas Cliff
Climbing from the Great Glacier up to the Whirlwind Maze.
Whirlwind Maze
Traveling through the Whirlwind Maze to find Sephiroth in the Northern Crater.
Junon
Barret, Tifa, Cait Sith and Yuffie escaping capture and execution at the hands of Shinra.
Mideel
Finding and rescuing Cloud from the Mideel clinic.
Mount Corel
Returning to North Corel and the Mount Corel Reactor to retreive the first Huge Materia.
Fort Condor
Defending Fort Condor from the Shinra assault to collect the second Huge Materia.
Mideel
The battle against Ultimate Weapon and rescuing Cloud from the Lifestream.
Underwater Reactor
Traveling through Junon to reach the Underwater Reactor in search of the third piece of Huge Materia.
Underwater Submarine Battle
Destroying the fleeing Red Submarine to retrieve the Huge Materia.
Rocket Town / Cosmo Canyon
Returning to Rocket Town to recover the fourth and final piece of Huge Materia and then returning them all to Cosmo Canyon.
Forgotten City & Diamond Weapon
Taking the Key to the Ancients into the Forgotten City and the battle against Diamond Weapon near Midgar.
Midgar
Parachuting into Midgar to stop Hojo from using the Sister Ray cannon.
Northern Cave
The split paths in the the Nothern Crater Cave that lead to the final battle against
Sephiroth
The final battles against Jenova, Bizarro Sephiroth, Safer Sephiroth (the One-Winged Angel) and the end of the game.
Does this sound feasible? Part 3 would have backtracking in already finished areas, which could, in addition the dev teams gaining experience and know-how during the first two episodes, speed up development.