Game development is exceptionally fun and engaging as far as software goes, so the supply/demand ratio is much more skewed. I would agree people are likely aware of the worse working conditions and pay etc, but are just passionate about it enough to do it anyway. I was an amateur game developer that always imagined a career in game dev but after learning about the economics of it went with more general commercial software as a career, but I still envy game devs for the work they get to do and their overall satisfaction with that work.
--EDIT: It's also worth noting that if you are on the digital content side of game dev like modeling and mapping there's not a ton of alternative options for practicing those skillsets professionally, unlike programming.
--EDIT: It's also worth noting that if you are on the digital content side of game dev like modeling and mapping there's not a ton of alternative options for practicing those skillsets professionally, unlike programming.