This kind of sadly smacks of someone putting too much credence towards the myth that you need a degree to get hired. Or worse, the kind of person who believes that a degree entitles you to a job.
Also,
> In late 2010, I closed shop on my business, sold off every bit of music equipment I had, and sold off all of my possessions, except for my Xbox 360. I moved in with my sister and decided I needed to start over. With all of my free time, I managed to pick up Battlefield 3 on release (I was already playing Bad Company 2, and played the BF3 Beta to level cap). I would play it about eight hours a day, and eventually saw that I was ranked 3,338 on the Xbox leaderboards. I then made the decision to try and get back into the gaming industry.
Or, he quits his job and plays videogames for the majority of his day. Instead of, perhaps, writing his own scores or producing audio for an open project or a game mod to put into a portfolio (maybe he did do this, but I'm assuming not, since he sold off all of his possessions except his least useful thing - an Xbox).
This doesn't sound like a story about getting screwed over, it just sounds like he doesn't want to put (the right kind of) effort towards something he really wants.