I think that the battle is the only 'real' part of the entire opening video. The rest is just clever foreshadowing (or forefriggin'tellingus) on square's part.

Like "Oh, here's this dude and this other dude. They're going to have a lot that'll happen to them. We were going to work in a nice rivalry over that girl with the feather we showed you earlier, but we didn't have time and forgot about it. But we were going to! that's all that matters, right chaps? Anyways, this guy's about to be knocked out any moment now, we'll let you run the show from here on out. Ta!"