Margins.
Game development doesn’t pay more because game development companies can’t afford to pay more.
Sure, an individual game dev company may make a lot due to the hit driven nature of the field, but the totality of the market simply makes less money per developer than big tech does.
In order for that to change, the market has to increase in size by appealing to a more casual audience, or existing gamers have to pay more. Not something I think most gamers would like. And these are the people who the workforce of game developers form from.
To really drive this point home, the gaming community recently lost their minds when it became clear that this generation of video games were going to retail for ~$90 per game. Never mind that even in the early 90’s an average game might retail for $40 and what we would call a AAA game could reach as high as $70. In 2025 gamers declared that $90 was highway robbery. But go look at the credits for an early 90s video game. That $40-90 per unit in the early 90s might need to cover the salaries of 23 people (the size of the credits list for Super Mario World on the SNES). Now $90 has to cover 435 people (the credit list for Super Mario Wonder on the switch). Sure we’re selling a lot more copies now, and (some of) the manufacturing costs are lower. But that’s a nearly 20x increase in personnel for a mere 2x increase in (non inflation adjusted) price.
The fun part of all this is that when union demands start forcing the industry in the opposite direction - higher cost, higher prices, smaller market. In a sane world, we would connect this, but in this world, we will just blame management. The union will forever have an invincible PR shield no matter how crazy the demand.