That is not true. Before Squaresoft and Nintendo had their falling out, they rendered some of the FFVI characters in 3D using the N64 graphical capabilities. There was never an intent to make a remake of their most recent FF at the time, it was just a small test to see what they could do with the next gen Nintendo system. Ultimately, the Big N and Square had their little problem together, Square went to Sony and FFVII was made. There are still some renders on the net if you want to see what the FFVI characters looked like using the N64.
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