I appologize for just copying and pasting the paragraph directly from wikipedia, but I thought this thread needed a small history lesson. This is why Final Fantasy was named as such by its creator Hironobu Sakaguchi.
On leaving the university, Sakaguchi became a part-time employee of Square, a newly formed branch of Denyūsha Electric Company founded by Masafumi Miyamoto. When Square became an independent company in 1986, he became a full-time employee as the Director of Planning and Development. Sakaguchi then decided to create a role-playing video game which he named Final Fantasy as a result of his personal situation; had the game not sold well, he would have quit the games industry and gone back to university. The game was released in Japan for the Nintendo Entertainment System on December 18, 1987, and was successful across Japan. Under Sakaguchi's watchful eye, Final Fantasy developed into a successful franchise, spanning from stand alone stories to spin-offs to direct sequels. In 1991, following the release of Final Fantasy IV for the Super Nintendo Entertainment System, he was honoured with the position of Executive Vice President. The last Final Fantasy game he directed was Final Fantasy V, becoming the producer for future installments of the franchise. In 1995, he became President at Square USA, Inc. His final role as game producer was for Final Fantasy IX. In an interview at the time he described it as his favourite Final Fantasy. He later went on to serve more as an executive producer of the series, as well as many of Square's other games, including Vagrant Story, Parasite Eve and Kingdom Hearts. The Kingdom Hearts series would later go on to feature a character named Master Eraqus, who was designed to physically resemble Sakaguchi and match with Disney's Yen Sid.
Hironobu Sakaguchi became the third person inducted into the Academy of Interactive Arts and Sciences' Hall of Fame on April 5, 2000.
I give credit of the above paragraph to the person who added it to wikipedia. This is not my work.