It was pretty ballsy at the time to have a lengthy flashback sequence to flesh out the villain. I'm reminded of how Call of Duty 4 did it some 10 years later. It was pretty dope sequence that certainly set FFVII a part. It also scared the crap out of my 9 year old self. I think going from a cyberpunk dystopia to a small town horror story really broadcast the range of the adventure you were just getting started on.