Tanked? SE has tons of cash on hand. Square Pictures made the movie, SP was a wholly earned subsidiary of Squaresoft, basically a company specifically made to produce this movie. When the movie lost money (137 mil cost, 85 mil return on investment) Square-soft decided that going into movies on their own was a bad idea and canned the subsidiary company. Square themselves were no where near financial trouble, they could of just made another CT or Xenogears and made money. The cost overruns were due to rendering technology at that time not being advanced enough to actually make this movie. Square had been used to making short FMV's for games and underestimated the amount of CPU work required to render a full production movie. They had all of zero experience doing actual movies and made mistakes. Modern render farms are powerful enough to produce full length movies using Squaresoft's photo-realistic technology, hence FFVII AC took less time then SWI.
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