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FF7 remake isn't episodic in the same way Telltale's games were. Additionally, it seems like there were a lot of other things that contributed to Telltale's closure such as being a small company that expanded too quickly, and that's not even mentioning that they're working in completely different genres for different markets. There are a lot of potential problems that Telltale could have had that wouldn't have anything to do with FF7 remake.
FF7R is NOT episodic. It is being reinvisioned as multiple, complete games a la the XIII trilogy.
When remade into a game with modern production values, the total amount of content will be the equivalent of multiple modern games. Financially speaking, it makes no sense to sell it as a single product. They'd be doing that at a loss. If you spend 3-4 times as much resources on something compared to your average product, the only way to profit from it is to sell it in parts. They originally used the words "episodic" in the press release, but later clarified each instalment would be closer in size to a game like Final Fantasy XIII and its sequels.
Seriously though, I'm dying to know what constitutes breaking up the original story.