That's the latest bit of info that has come out and they have officially said that Combat will be real time... Think Kingdom Hearts. This was kind of expected, but to have it super officially confirmed kinda hurts.
Ruby Weapon will be a bitch to fight now...
Don't get me wrong, I'm still interested, but with the whole battle system changing this will not be the FFVII I grew up with... In a way this is good, since it'll be a new experience with something familiar... Kinda like:
In a way this is bad, because it's NOT The Final Fantasy VII I grew up with... what if it becomes lame?
Only time will tell.