One of my relatives works for a large well known game developer; same employer for years. Because they decide to classify many of their devs as contract workers, they are denied rights afforded to 'full-time' employees - when she is laid off for months at a time (to prevent being called a full-time) she can't collect unemployment. No health care, no benefits whatsoever. And due to contracts, can't work for a rival ei…
I'm amazed that this is legal in a first world country- it would be illegal to do this in a couple of third-world countries I'm personally familiar with: the laws state that if you're a on contract for more than a certain number of months, you automatically become a permanent employee. Firing and rehiring for the same position as a contractor is straight-up illegal.
The competitiveness and desire to work there is what drives these insane working conditions.
The big difference is this: If you have the skills to work in the gaming industry, you also have the skills to work in another software industry that will compensate you appropriately.
Nobody needs to work 100 hours a week on salary for at a AAA studio who will discard you.
The key message is this:
AAA productions are losing touch with their audiences and spending unholy amounts of money on garbage games. (this is accelerating just like Hollywood).
Unlike the poor actor/actress who has to suck Spacey/Wienstein's dick, YOU have options. Go work a boring 9-5 webapp job with benefits and then hack on a game with a few passionate friends with a vision of something AWESOME.
The Internet levels the playing field for us. Minecraft is an excellent example of this.