Honestly why should it bother anyone if prisoners are treated well? A video game costs nothing compared to other costs of incarceration. The only thing that matters is that people can be rehabilitated if possible, and isolated if not.

And the last people who should define punishments are victims of crimes, because our own instincts for revenge are wholly miscalibrated for modern society. I've had thousands of dollars of irreplaceable equipment stolen from me, some of which I designed myself, and yet I rationally accept that the perpetrators (never caught) shouldn't be strung up in the proverbial town square for all to see.