In tech companies it's quite common to have a period of 'inter contract' between two missions where you can do trainings or even self training. Is the video game market hostile to this kind of organisation or has it just not been tested yet ?
In-house developers work for a flat annual salary, and IIRC most game development companies don't pay overtime whilst demanding devs work overtime during crunch time.
But game dev extortion is a known problem, and the other problem is that people take it. Working in the video game industry is a dream for a lot of people, and they're willing to take a lot of shit for the perceived privilege to work on the things they love.
And the weirdest part? The actual development of a video game is often only a small part of the total cost package; iirc, games like the Call of Duty series cost more in marketing than the actual development.