The corporate DEI boom only came about because analysts and consulting firms released reports convincing the business world that "the modern audience" was taking over and catering to it would make them a lot of money while protecting them from cancel culture and negative press from the media. This was partially done by demonstrating that some of the most successful businesses in the world had already embraced DEI while forgetting that correlation does not equal causation and that at least some of these companies went full DEI well after they were already successful.
Reality turned out to be quite a bit different than they were told, which is why so many businesses are reducing DEI initiatives or axing them entirely. Though, in their defense, many of them exist in a bubble where they think California represents the world, plus it took awhile before all sides were able to weaponize social media properly. Now, hilariously, they both use economic intimidation and misinformation tactics while also complaining vehemently about what the other side is doing.
It also turns out that many non-English speaking countries didn't get the original memo or don't give a rat's ass about it if they did.
Relative to games specifically, so many studios and publishers have forgotten one very important fact--most people don't like being preached at, especially not by condescending pricks who have only ever experienced a very narrow slice of the world. You can use the elements themselves and people won't care--The Fallout series had female and PoC main characters and it was praised by pretty much everyone--but if you try to shove your religion down their throat then they're going to resist.
