Comment by CaptainOfCoit
6 hours ago
Now you made me unsure, so skimmed https://www.youtube.com/watch?v=SrsWUmiayLM for a bit, which seems to me to confirm it's just horizontal camera movement. But there seems to be a zoom in/out functionality, which would move the camera in/out+vertically, but that's different than rotating around the character freely. The camera also does a ton of vertical movements by itself too, as Mario jumps/falls.
Yeah, I think you are actually right. I must have misremembered it. This source also suggests Mario Sunshine didn't have a "free" rotating camera but a combination of horizontal rotation and zoom: https://strategywiki.org/wiki/Super_Mario_Sunshine/Controls
I guess then the first game I definitely know that had a free camera was The Legend of Zelda: The Wind Waker, which came out a few months after Sunshine. This is also confirmed here: https://strategywiki.org/wiki/The_Legend_of_Zelda:_The_Wind_...
Of course the question is whether there might have been an earlier game which had it. Regarding Ico, apparently it also allows only horizontal rotation (camera "panning" is horizontal movement): https://strategywiki.org/wiki/ICO/Controls