My first memory of FFVII was going to a friend's place after school some time in late 1996. This was definitely before the game itself was released, but after Tobal No1 was out in Japan. Most of us didn't have Playstations at the time, but his brother did, and his brother also imported Tobal No1 and got the FFVII demo.
We gathered round the living room TV as he set the stuff up, and then we watched this CG FMV opening with animated 3D characters. It was really stunning and mindblowing at the time, especially with the Japanese art direction the game had, which couldn't be found in any English PC games at the time. Then Cloud got off the train, and.... you could CONTROL Cloud to move. But the entire background still looked like the FMV! Wow! Another amazing scene at the time I distinctly recall was the cutscene in the elevator with the Avalanche members. At the end of the conversion when the elevator doors opened, Cloud was just left there and he wasn't moving. I thought something was wrong with the cinematic, but it turns out you're supposed to move the character out of the elevator!
A lot of these things seem really silly these days, but the jump from the SNES/Genesis generation to the PSX generation back then was really something remarkable. There were a lot of presentation methods and direction concepts which weren't really applied to certain genres up until that point, and it was really refreshing and new to see games like that suddenly popping up. Definitely a game changer.