According to Naoki Yoshida, the producer of Final Fantasy 16, Creative Business Unit III is busy polishing and debugging Final Fantasy 16 right now. Furthermore, Yoshida revealed that a trailer for Final Fantasy 16 is finished and could air soon.
This is the most significant piece of news anyone's heard of Final Fantasy 16 in weeks. The last we heard, Square Enix had delayed the franchise's first mainline title with an "M" rating due to the COVID-19 pandemic. It's nice to know that the next mainline installment could be coming later this year if not early next year, which would put around 7 years between it and 2016's Final Fantasy XV.
Unfortunately, the release window is all speculation. Lest we forget, Square Enix will launch Forspoken in October. With Final Fantasy VII Part 2 on the docket as well, Square Enix will want to stagger its big releases so there's no overlap. But, if Square Enix already has a Final Fantasy 16 trailer prepared, we doubt that Final Fantasy VII Part 2 is far off as well. Both are PS5-exclusives set to come out in a year or two. There's a high chance that Sony's next Days of Play showcase, which usually happens around May, will include both upcoming Final Fantasy games as well as God of War: Ragnarok, among several others.
With several events lined up for the next few months, we're bound to hear more about Final Fantasy XVI and Final Fantasy VII Part 2 soon enough. Hopefully, by then, we'll have found out if Square Enix will join PlayStation Studios or not.