Aerith's Fate Complicated in New Final Fantasy VII Storyline Spanning Multiple Realities
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Yes, Aerith still dies in Final Fantasy VII Rebirth, but it's complicated due to a multiverse storyline where realities collide.
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The scene shows Aerith dying, then shifts between timelines where she does and doesn't die. This illustrates her death isn't "canon."
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After defeating Sephiroth, Aerith appears with Cloud, but when things return to normal, the party mourns her body.
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Cloud can still perceive Aerith, implying he exists between worlds where she didn't die.
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What this means for the next game is unclear - Aerith says she and Cloud will stop Sephiroth from different worlds.