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But to be honest, it doesn't really sound like you're looking for a Final Fantasy game.
Neither is open world or with open world activities. I'll agree with the comment above and say that FF titles are not what you're looking for. Sounds more like you want Assassin's Creed or Elden Ring, or any MMO really.
Story line wise and character development I'd say they tie and it's subjective to which you prefer. Additionally FF16 goes back to a more medieval, older fantasy setting which they haven't done since FF9 whereas FF7 is one of the most modern set FF games if that influences your choice.
Ultimately where FF7 wins though is game play. Both have more action orientated combat but FF16's biggest flaw is the lack of RPG mechanics in building your character with skills and equipment. Basically only your raw stats can be changed for the most part (damage, defense, etc.).
FF7 has a lot of ways to play the game in the true Final Fantasy fashion with various kind of materia with passive effects, magic skills and elemental weaknesses, utility abilities (like steal or assess). Additionally you choose which stats and passive abilities to level up on your characters (technically on their weapons) for how you want to build them.
16 gameplay is rather simplistic and insultingly easy for what it's trying to mimic, upgrades are 99% just linear progression stat sticks.
Rebirth just does better across the board.
I loved 16 with the exeption of the ending, that stopped any new games I would do for it. So pissed with those type of endings.
With that being said, there is a chance Rebirth is just as demanding, but we will have to wait another day to find out.
If the open world is really the most important part to you, then FF7 Rebirth is the correct choice. I personally liked the way FF16 chose to do things, with many different large areas that all contain plenty of side missions.
I am someone who is a fan of FF13, 15, and also 16, which many Final Fantasy fans consider the three worst games in the series, so maybe I am the wrong person to answer this question.
Ultimately my final answer is get both lol.
I also like 13, 15 and 16.
I've played FF7 Rebirth on PS5 and it's also pretty good.
If he has to choose between 7 Rebirth and 16, 7 is more bang for the buck (while on sale), it's really long if you target 100% completion..
If you haven't played Final Fantasy 7 Remake. Start there, before going into this one. Otherwise it can get confusing pretty fast as far as the story goes.
FF16 is an awesome game, with a much more mature story, but Final Fantasy 7 is among the best FF game for a reason. In an ideal world, you would get both if you like narrative story driven games. For open-world content though, FF7 Rebirth over FF16.
I'd go with Rebirth personally.
In all seriousness though, it probably depends on your personal preferences