It's like Hollywood. There is always a multitude of starstruck 20 year-olds who would happily do the job for free, just for a chance to "make it big". Larger employers count on it and it distorts the salary/work-life balance economics of all the junior and mid-level employees in the industry.
The video game industry is a tournament. I have nothing but respect for the talent it attracts, but you have to be a little bit crazy to enter it.