First off let me get on my high horse and say the engineering in video gaming is generally more complex than the engineering I've done working in big tech. You need a lot more creativity and ingenuity to solve the unusual problems you run into in gaming.
From there, as others have said, it's a simple supply and demand issue. Nowadays I am a university professor, nearly every student who comes in wants to pursue one of the three fields: cybersecurity, video gaming, or recently ML/AI.
This shouldn't come as a surprise, they want to work on the things that influenced them and shaped their experiences so far. There's an absolute over supply of students who want to make video games.
Gaming, like most of entertainment, is a passion-driven industry. You trade good salary for your name in the credits. You trade nights, hobbies, marriages, and your health for this opportunity. That is unless you reach that lofty 1% of developers who are too valuable to be fired.
Not all areas of gaming are like this. Gambling, like working on slot/pachinko machines, pays very well and has pretty realistic work-life balance. However every student I've talked to about this has universally said "no I don't want to make slot machines. I only want to work on GTA/Stardew Valley/Hollow Knight/Fortnite."
There's seriously no shortage of starry-eyed students who are willing to accept minimum wage to solve SDE3 level problems. I was one of them once.