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There are many AAA studios already making use of C#.

A big issue was surely the tiny market size Windows Phone has.

AAA studios may use C# for tools, but exactly zero of them use C# for their actual game engine.

Are you sure?

I know a few cases in German studios.

Like what? AAA has a definition involving budget, it doesn't just mean "not indie". I am not aware of anyone operating at that budget level and using C#.

ExDream, http://exdream.com/Games/

The first company in the world releasing a .NET commercial game back in 2002.

Bitcomposer, http://bitcomposer.com

EA Phenomic, http://www.phenomic.de/

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