Well, Squaresoft *did* try to make a movie before. It was called FF: Spirits Within, and it bombed so hard that Squaresoft had to merge with Enix to become Square-Enix. I personally enjoyed it but...
IMO, FF stories are deeper than can simply be made into a 3 hour movie. I suppose it can be done with 3, 3-hour installments ala LotR, but even that has its critics that so much was left out of the movies which was present in the books, despite the fact that the movies were the epitome of EPIC.
Not to mention that movies probably cost far more than games to create.
However, if I was head of Square-Enix, IMO I'd just reform the gameplay to the fact that there is less "you encountered a monster. Kill it. Pick up lewtz. Repeat.", and even *MOAR* focus on the story. Yes, combat systems are a part of gameplay, but the whole "let's make a freaking RITUAL out of bashing a monster" has honestly irritated me. I see random encounters as a necessary evil to provide some modicum of "gameplay", despite the fact that, oh, visual novels are pretty damn popular in Japan, and the only gameplay they have is decision making in order to move the story (EG "Do I kiss the heroine? Yes/No). IMO, if VNs can get away with *that little* interaction and have just ONE route provide a fantastic anime (Fate route = Fate/Stay Night, Ein route=Requiem for the Phantom...aside from the REALLY STUPID last one minute), then why the heck do RPGs have to have all of the monster bashing to begin with? Because U.S. gamers are attention-deficient numbskulls that always want to stab/shoot/kill something?
That kind of crap is the reason that games aren't seen in the same light as books and movies.
IMO, if I was head of Square-Enix, I'd cut out all of the combat except for the *absolutely necessary*, and by absolutely necessary, I mean that if it doesn't advance the freaking plot, or provide exposition, then cut it out. Yeah, okay, you might run into the occasional monster, but not being able to take 3 steps out of towns without something trying to kill you = "Can I please get past these randomly colored weird-looking oversized dogs and continue on with the story already?"
IMO FFs are fantastic at telling a story, and all of the combat just takes so much away from them. I'd do away with as much of the filler combat crap as possible, and tell the "MUST KILL SMASH STAB EVERYTHING IN SIGHT" gamers to go and find an FPS.