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The games industry sucks
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I don't think you realize that video game developers and other related jobs are pretty badly compensated for the job they're doing. Those devs are among the most skilled ones and could probably earn 5 or 10x what they're getting now by going to work at some FAANG or big banks. They're working here because they love video games and want to create something fun, so it sucks when you just get fired like that.
Also, it's not because you've had it worse that their situation is okay, it's fairly easy to always find a worse situation and just dismiss any issue.