I don't personally own Ver. 1 of the Play Arts Kai Cloud, but from having this figure and looking at pictures of the Ver. 1 edition, I think this newer one captures Cloud's appearance from the game much better. Ver. 2 seems to have softer features, and his trademark hair matches his in-game hair a lot better.

Overall, I love all the additional bits and pieces we get with the Play Arts Kai Cloud figure, which give me the freedom to pose him however I want. Although a bit on the pricey side for non-scale figures, I think if you're into figure collecting and love FFVII, it is definitely worth a purchase.