The bigger problem is just inertia: large game engines are enormous.
Also game engines emphatically don't have to be huge. Look at Balatro shipping on Love2d.
Balatro convinced me that Love2D might be a good contender for my next small 2D game release. I had no idea you could integrate Steamworks or 2D shaders that looked that good into Love2D. And it seems to be very cross-platform, since Balatro released on pretty much every platform on day 1 (with some porting help from a third party developer it seems like).
And since it's Lua based, I should be able to port a slightly simpler version of the game over to the Playdate console.
I'm also considering Godot, though.
There's no other internal or external Microsoft /support/ that I'm aware of. I wouldn't necessarily use it as a signal of the company's intentions at this time.
That said, there are Microsoft folks working on the Rust compiler, toolchain, etc. side of things too. Maybe those are better indicators!
Thanks for your work, though!
Now almost a decade later, VS tooling is still not there, stuck in ATL/VC++ 6.0 like experience (they blame it on the VS team), C++/WinRT is in maintenance, only bug fixes, and all the fun is on Rust/WinRT.
I would never trust this work for production development.
I was the same the first two times I tried to use rust (earnestly). However, one day it just "clicked" and my productivity exceeds that of almost anything else, for the specific type of work I'm doing (scientific computation)