Video game development has much more in common with a traditional factory assembly line job than a typical startup (for better or worse). Also VC doesn't seem to be all that interested in investing into game dev companies, I guess because it's such a hit-and-miss business (e.g. even when a game-dev company lands a massive hit, the next attempt may be a massive flop).

Is it as simple as supply/demand? People love games and game-loving developers are willing to take lower compensation to be in the industry? As a former obsessed gamer, I remember in my 20s I almost would have been willing to work at iD Software without pay if they let me.

I think a never-ending pool of young, fresh, and naïve graduates happy to sell their soul to make video games has been a strong contributor for low wages for a while. Any time someone gets too senior, just replace them with another graduate. Naturally, the product quality and timescale suffers too.

Supply and demand would suggest that there's more supply of those willing to be paid less to work in entertainment 'on games' to meet the demand. Would be cool to see actual economics on it though.

Passion tax.

Because they put up with it.

Has it? A lot of 'big tech pay' is based on US salaries which are astronomical compared with all of Western Europe. And big game companies are lot more spread out globally. For example, in this case they're in the UK so how do their salaries compare with UK dev salaries?