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I think if Square enix got no money out of this deal at all, it only proves the incompetence of the SE executives. Lesser known companies have been actually paid by MS for lesser known titles in the past, so it wouldn't have been that difficult for SE to get at least some amount of money when the FF deal was done.
I don't know whether money is the primal reason for the decision or not (I would guess it isn't), but it would be very unwise to give their biggest title FOR FREE, when the money-making possibility is actually before them.
Any sensible business leader would try to maximize their profit, don't they? Yoichi Wada is a former banker and a famous money-maker after all