I'm the original developer of Bitquest[1], where we used to process hundreds of micropayments smaller than 1 cent each day using 0 fee Bitcoin transactions.
When the blocks started to fill up we had to move all transactions off-chain except when players send money to the game and cashing out.
From the player's perspective, it's hard to justify paying $2 each time get Bitcoin in/out of the game. On the other side, there's no cut for Apple, Google, et al. who charge for as much as 30% cut for micro transactions.
I'm now working on a similar game[2] that will take advantage of Segwit and Lightning Network. There's still miner fees involved to send money in and opening a payment channel, however there's no cut to a payment processor and the associated problems of compliance.
I'm not saying it's perfect but there's still important advantages on Cryptocurrency for game transactions and I'm confident that Steam and others will get back to it after it's infancy.
[1] https://github.com/bitquest/bitquest [2] https://hammerco.in