According to Glassdoor (which I realize is not the most accurate source), Blizzard Software Engineer median pay is $88,500 which is definitely peanuts in Irvine, CA. That's the rough equivalent of less than $60k here in Charlotte, which is below market rate for entry level.
Those kinds of rates are what kept me from applying, despite a lifelong enjoyment of their games.
A highly competitive process to get my foot in the door for a pay cut? No thanks.
Yeah since this is Hacker News, we tend to focus on the software engineers, who have lots more negotiating leverage compared to say, a PFX artist.
It still applies to the gaming industry, but to your point, the bargaining power of high talent programmers is suppressed by eager programmers (not mutually exclusive groups).