Spending a good chunk of your career in game development has a tendency to make it rough to job-hunt outside of games (with the exception of programmers - game programmers seem to get no shortage of offers from SV startups and bigger firms). Some of these people are very much 'locked in'; they probably moved to the bay area to work at LucasArts and brought families with them.
I mean, I interviewed at the LucasArts campus in SF maybe a year ago and the people there definitely didn't act like they were constantly at risk of losing their jobs. It was a big, established studio with a long history, and the team seemed to have a lot of people in just such a situation. 'Go work someplace else instead' is not a simple proposition for these people.
Is this what 'patio11 means by video game developers being willing to deal with low pay?
At least for now, no developers need to deal with their pay being cut. Go work someplace else instead.
Unless you think you have to work on video games.