I’ve seen similar on the sidelines of other B2B ideas for games where the product never really gains traction because the only people worth selling to are large enough to be able to do it in house. Even if they don’t end up with as good a product it’s often good enough and whilst the grass looks greener there is a lot of risk-aversion to overcome.
Plus the centralized internal tools team is incentivized to not use 3rd party solutions (because they'd be out of a job if they did), and they have more sway with upper management even if the game teams complain. This happened to my fried who worked at Apex Legends and she was never able to be as successful at live ops as she wanted to be.
I'd say game studios are also especially risk-averse if you are building tools that are in the critical path for the game. Developers have to really trust you to be open to using your tool, which is probably why Microsoft is able to sell Playfab