This is Final Fantasy VII: Re-Imagined. It’s an indie (read: unofficial fan project) side-scrolling beat-em-up that, recreates Final Fantasy VII as a 2D side-scroller. It’s awesome, it’s free and you can play it right now.
While a little rough in places, it’s pretty good! The controls are nice and heavy, and the fanservice levels are through the roof, from the attention to detail in the art to the soundtrack.