"FFVII defined the (RPG) genre" - Agree or Disagree?

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So we know that Lionhead Studios' Peter Molyneux doesn't think the PS3 will hit the big time until it has a game to back it up, but this new statement from Molyneux is bound to divide gamers.

Is Final Fantasy VII the game that defined the RPG genre, or isn't it ?

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Speaking to VideoGamer.com earlier this week, Lionhead founder Peter Molyneux has revealed that he considers Square's Final Fantasy VII to be the game that defined the RPG genre.

"I always remember back to Final Fantasy VII, when I first played FFVII, that to me defined the genre," he said when talking about the PS3 and if it has had any defining titles. "Those were the 'oh my god' moments, I don't believe they exist. I haven't seen many of those on the PS3."

gamegrep article

Just bringing a bit more discussion to the forum. So what do you think? ... Did FFVII define the RPG genre, or not?

I'm partially just repeating what Raijin touched on, but rather than define the genre, I believe Final Fantasy VII created a standard. Looking to the gameplay of the previous titles, there's not much differentiation between the entire series. Some of the previous titles even offered much more depth through the use of classes, where Final Fantasy VII might be limited in comparison. I think that Final Fantasy VII brought with it the most significant development of a genre we've seen, and that's why it's held in such high regard. While there might be games that have long since passed the standard of Final Fantasy VII, I believe that there has never been a title contributing such drastic improvement on a whole. Like Raijin said, Final Fantasy VII boasted the art of good storytelling, which is where Eastern RPGs typically hold their fame. Previously, aside from specifically VI, the majority of Final Fantasy’s were honestly forgettable; some of the games didn't even have characters! All I can really remember from them was a theme of crystals. The only 2D Final Fantasy that was worthy of tale-recognition was Final Fantasy VI through its brilliant cast of characters (albeit accompanied by a few easily forgotten) and genius antagonist. Previously, the purpose was just to overcome a powerful enemy; who it was didn't really matter to anyone; but Final Fantasy VI boasted an iconic Kefka who had a somewhat symbolic design. Final Fantasy VII greatly improved on this: every member of the cast displayed an individual sense of personality and character through script and design. The story, to any other game, might have been easily overlooked; combining it with such a loved selection of characters brought actual emotion to the game. As well as this, I believe the drastically improved graphics played a major part in creating this real idea of emotion. Not only could atmosphere be created through such beautiful, detailed environments, but FMV gave us an opportunity to see somewhat realistically the mannerisms and personality traits of each character; it allowed them to convey real emotions both through bodily actions and facial expressions. Could Aerith's death have been portrayed accurately and have been so symbolic through 16 bit graphics? Not a chance. Overlaying this with a beautifully composed soundtrack which was previously impossible made it even better.

So maybe it's not the greatest game of all time, or the greatest RPG or even the greatest RPG of its generation, but it set the bar for all RPG’s following it and made a significant contribution into the art of story telling. No longer was the genre just lore and numbers, it was character and story.