Quote Originally Posted by dylamug View Post
this is taken from the link i posted:
"In the Reunion Files for Advent Children, Tetsuya Nomura states that PHS stands for "Party Henshu (Editing) System.""

also, i played through the game a million times and never once have i seen the initials explained before.
Totally did not see that the first time. Although, I'm sure I saw "Hensei" somewhere, so maybe that was a translation error (as much as I love FFVII a lot of minor things got translated badly).