Most people agree, that after Square and Enix merged together, they just were making as good games, sadly.
I'd like to see a true Mario RPG 2 in that same SNES style graghics, if they could have just as good a story and all.
I think it all started with the Spirits Within movie flop.
Spirits within is for all intents and purposes, a CGI demo to show how far CGI has come for its time and honestly, I still think its very impressive. Yes it is all CGI but the graphics shown in the movie arnt too far off from even modern games like Final Fantasy VI which came out a good 15 years after.
Spirits Within
Final Fantasy XV
As we know, Spirits Within was a huge flop. The film went overbudget, costing $137m to produce vs its initial estimate of $70m while the film only grossed $85m worldwide. This resulted in Sakaguchi stepping down and eventually leaving Square, the man who helped found the classics like Final Fantasy, spear-headed Chrono Trigger, and was the producer for FF7, Tactics, and Parasite Eve.
The merger with Enix was also questionable imo. Enix tended to outsource game development so it wasnt like Square was getting new programmers by merging with Enix, honestly just control of famous IPs like Dragon Quest. As the entity SE, they also seemed more focus on acquisition as opposed to new IP generation since the company has become too big in a sense and are now far more beholden to shareholders.
I do think what SE really needs right now is an injection of new talent. From the outside looking in, it does seem like Nomura is doing everything (Kingdom Hearts, Final Fantasy VII remake, FFXV). Dude needs a break and more time to focus on a single project with others taking the slack. Luckily, it seems that the new FF is produced under Yoshida who is the man responsible for saving FFXIV.