It's a fantasy of the final kind that just keeps on chuggin'. Shane Bettenhausen of EGM fame got to talk it up with Shinji Hashimoto, Yoshinori Kitase, Tetsuya Nomura and Toriyama about Square Enix and their Final Fantasy XIII project.
While the interview will be appearing in this month's magazine, the whole unabridged version can be seen on 1UP. Mr. Kitase starts it up by conceding that they had originally thought about doing FFXIII on PS2 before deciding that both it and FFVersusXIII would ship on PlayStation 3. On the subject of narrative crossovers, Nomura says that each world is separate and will not allow for other characters meet each other.
Of course he follows that up stating that there is the "possibility in the future" of that happening, but obviously they haven't gotten to that bridge yet.