This is actually a really good fit. (It kind of rhymes with the original use of Erlang, being telecoms infrastructure.) We get outstanding concurrency support, high reliability, and really efficient development times. I can't imagine shipping this feature with a server written in C++ (the language I'm most comfortable in), and I can't imagine scaling it the way we need to if we'd gone for a traditional web language like Node, PHP, etc.
If you're interested, you can see the RakNet (game networking protocol) implementation we use on the server here:
https://github.com/X-Plane/elixir-raknet
The README gives a good overview of the full MMO server's architecture, too: each client connection is a stateful Elixir process (not to be confused with a heavy-weight OS process!), acting asynchronously on a client state struct; clients then asynchronously schedule themselves to send updates back to the user.