I had heard rumours that they were bad to work for (yet they still get lots of smart nerdy kids applying). You heard the same, or actually worked for them?
I had internship in a gaming company as a Software Engineer (internal systems, not games directly). Eventhough I did not do games, I was literally working in the same environment.
In addition I have a small business in games industry, and am having plenty of stories of game developers.
If you ask me, why such an abuse of staff? I believe it is the games - great opportunity of having endless pool of motivated and experienced youngsters. Just like a fashion journal for women.