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Avalanche was born in Cosmo Canyon. Lets "Pretend" Barret started it. Assuming thats the case, Barret would have to have been from Cosmo Canyon, or been there shortly before the creation of avalanche. If this is the case, what are the reasons he has no Idea who Red or the Old man is? And why does no one from Cosmo Canyon know where he is?
The answer is simple, he is not from, nor has he ever been there. Until they go there after Midgar, at which point he was already in Avalanche.
Either this means FF VII had a huge Plot hole on its own, which was fixed by the Retcon, or there was no plot hole and Barret Never Created Avalanche, and only started the Section of Avalanche that was in Midgar.
Barret could've been in Cosmo Canyon when he/they (Biggs, Wedge, Jessie and maybe some randoms) started AVALANCHE, as far as I remember no visitors in Cosmo Canyon are forced into a sightseeing trip. The Cosmo Candle is one of the most notable things in the canyon, and so there is nothing suggesting Barret could not have been there earlier in his days.
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Charcoal, I think you are failing to see something major in your argument. You are claiming that FFVII was a really really good stand alone game. I agree with you. Though I haven't taken the time to figure everything out myself, I have figured out quite a bit, based on the original game alone. And I do believe that it is entirely possible to discover everything there is about the original game just by playing the original game. However, this does not mean that the story is complete. It just means that the first chapter was told really well. Now, in Advent Children, the major story point (despite what it may seem) was Cloud finally releasing his guilt about Aerith's and Zach's deaths.
The story was complete, AC were never part of FFVII in the first place. Of course there is room for sequels, but that isn't necessarily.
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If you want to rely only on the original game, Cloud never released this guilt. However, in AC, Cloud did. Obviously, if this is part of the story, FFVII does not complete the story. Because AC came along and helped us understand more about it. Two years after Meteorfall, Cloud released his guilt. There is no mention or even a slight reference to this in the original game. Do you know why? Because the game only deals with what happens in the game. It doesn't deal with what happened two years after the game.
It makes Cloud release his guilt and that may very well be part of the story. But it doesn't need to be, that's where it's at.
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Thus, AC was needed to complete the story. And that's not all. Not only did Dirge of Cerberus add onto the original storyline, but it also gave us quite a bit of background on Vincent's life. There is no conceivable way to figure out all of Vincent's past just by playing FFVII. FFVII tells us that he was a Turk, that he loved Lucrecia Crescent (the original game actually never even gave us her last name), and that he had some dealings with Hojo because he never tried to stop Lucrecia and Hojo from completing the Jenova Project by injecting their own son with Jenova cells.
AC added something new to the story.
One of the most difficult aspects of FFVII is deciphering Vincent's past. Many players, like yourself judging by your quote here, think there are no way of figuring it out. But you can, its just ridiculously hard because the hints are scattered across the game and not only in Vincent's flashback like many people think.
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Never does it tell us anything else about Vincent. However, for all you know, Square Enix could have written out Vincent's entire history before FFVII was even made, and then released it in a new game which not only gave us this information, but also new information.
Believe me; Vincent's background in the original was nothing like the one in DoC (well for the most part). If you're in doubt (which I would guess you are since you said for yourself you haven't taken the time to figure everything) then I suggest you play the original game a couple times more to look for hidden clues, I'm sure you'll find differences between FFVII and DoC since they're quite obvious once you know what to look for.
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You want to know why Deepground is never even mentioned in VII? Because it was a completely secret organization. Reeve didn't even know of it's existence, and he was in the President's top circle. Only President Shinra (not Rufus), Heidegger, and Scarlet would have known, according to Reeve, as stated in DoC.
How convenient then :rolleyes2 .
Well, if you plan on looking for those Vincent’s past hints – luck with that :) ! Not like if you’re too likely to need it though considering how much DoC is focused on fans’ point of view rather then the complexity of the original plot.
Btw, I wouldn't want to compare it to The Hobbit. Like I said some stories handle it better then others. And tbh I think The Hobbit had a lot of room for LOTR. Judging by all the resentful fans however, FFVII is quite a different story.