Why Did Tobal No. 1 Come With a Final Fantasy VII Demo?
Square's problem in the summer of 1996 was attention. DreamFactory was an unknown studio, the fighting genre belonged to Sega and Namco, and Tobal No. 1 had a flat shaded look unlike anything else on the shelf. Square's asset was Final Fantasy VII, its first PlayStation RPG, still months from release and already the most anticipated game in Japan.
So Square put the two together. Every copy of Tobal No. 1, in Japan and in North America, came with a second disc carrying the earliest public playable demo of Final Fantasy VII. It was cross promotion in its purest form: the RPG sold the fighter, and the fighter put the RPG into hundreds of thousands of homes before it existed.
THE TWO COVERS
Same game, two shelves

THE DISC
What was actually in the boxWHAT IT DID FOR SALES
The honest version of the famous claimTHE FIGHTER UNDERNEATH
Why the story is not the whole storyThe famous version of this story, that people bought a fighting game just to throw it away and keep the demo, is the era's reporting and fan memory rather than a measured fact. No source separates demo buyers from fighter buyers, and the fighter complicates the joke: Tobal No. 1 reviewed well on its own merits, with IGN at 8.7 out of 10 and Electronic Gaming Monthly calling the battle mode the highlight and the demo a bonus that added value for money.
The defensible verdict is narrower and stronger. Square bundled the most wanted demo in the world with a good game from an unknown studio, in the one market where that demo was worth the most, and the bundle topped the charts and sold three quarters of a million copies. The demo did not make Tobal a good fighter. It made sure Japan found out that it was one.