Terra's armor now has a cape at the end of his story in Birth by Sleep

Never understood the obsession people have for their armours and capes.

So, one second he has no cape, then all a sudden he does? I guess it was nice of them, but they should have left it alone. Capes aren't good for you anyway, haven't you watched The Incredibles?

THIS THIS. I always think of The Incredibles when people bitch about the capes' absense in Birth by Sleep. Like, they should be glad about it! Well at least they got no planes around there.

Is it only in that scene?

Dat azz tho'

Never understood the obsession people have for their armours and capes.

I'd prefer it more for consistency's sake than anything, but it does look cooler, in my opinion. 

I dunno. Batman's been wearing a cape for 75 years and he's doing pretty alright for himself.

EDIT: I also have to reference this comment I read on KHInsider

*Terra's cape arrives five minutes late and with starbucks*

"Alright, sorry I'm late, guys. I got caught in tra-...wait is the battle over? Damn it!"

Sigh, well, at least they did something for the capes. That much is good enough for me. I'm just glad to see Terra clad in armor with that cape the way it should have been done. Maybe someday if they ever feel crazy enough to try this again, or more likely bring back the concept of using armor in future games, they will be able to include the capes like they originally wanted. Thanks for doing this KH team, this means a lot to us!   

Saw this earlier on Tumblr and started laughing when it just.. pops out. You can actually see some graphical flaws in there, and it looks pretty awkward. If only they had made it shine and show up keyblade-like that would have been cool. But it just looks awkward here...

Nice of them to try, though.

It was a nice gesture for them to add in that cape for consistency's sake.  It does look a bit funny how it pops out randomly, but it doesn't really bother me.

Saw this earlier on Tumblr and started laughing when it just.. pops out. You can actually see some graphical flaws in there, and it looks pretty awkward. If only they had made it shine and show up keyblade-like that would have been cool. But it just looks awkward here...

Nice of them to try, though.

Yeah! just looking at it in the screenshots, it pops out too much. I wonder if they did it for Aqua and Ventus.

Yeah, it definitely pops out and looks funny. At least people can see that it would have been hard to do properly. 

Capes for KH3 confirmed.

They also added the cape to the small fragment of the KH Re:coded opening where Terra appears. (at 0:00:45)

I agree with Kaweebo and SirBuckford for the consistencies sake thing, it just makes sense. I guess in hindsight it is awkward how it's handled, but eh, I'm ok with it. I would be surprised if they didn't get capes in KHIII now Atheist, . 

And so, due to his "victory", the young Lingering Will finally reached adulthood, and a cape sprouted from his back to symbolize reaching his maturity.

I just got a crazy idea that could actually explain the cape just popping out. They all have capes in the intro video, but we don't see them during the actual gameplay. What if they can CHOOSE to have the capes as part of the armor or not? What if the characters literally have the ability to choose whether or not the cape manifests? What if they don't have the capes most of the time because frankly they serve no purpose and they'd get in the way, but at the end, Terra--knowing he'll be there for a long time--chooses to summon his cape to protect himself from the elements? Left exposed, metal rusts. Even Keyblades aren't immune, as we see in the graveyard. And if his armor were to rust away, where would Terra's mind go?

Saw this earlier on Tumblr and started laughing when it just.. pops out. You can actually see some graphical flaws in there, and it looks pretty awkward. If only they had made it shine and show up keyblade-like that would have been cool. But it just looks awkward here...

Nice of them to try, though.

I agree, that would have been cool. ^^