I don't think there's a causal link there. I've interviewed quite a few game development graduates for programming jobs, and they weren't any better or worse than CS graduates. Plenty of riff-raff like from any other subject of course, but enough decent people that they're clearly not useless degrees either. I do wonder if you're limiting your chances with such a specific degree though. No idea how easy it is to get a non-game job with one of those.

I suspect the effects they're seeing are caused by:

- dramatic increase in cost of living in the UK (low salaries really burn)

- UK university degrees becoming easier. (you won't believe what passes for a 2.2 these days)

- The game industry isn't quite as cool as it once was. Chances are you'll work on a crappy game that sells badly, or if it actually sells well you won't see any of the profits. Teams are so big that when friends ask you what bits you made you sound pathetic.

It think it's a bit the other way around. Now that the career of "game developer" has established itself as its own niche the Universities are catering to that segment by creating new programs. Of course, any degree from a reputable school will include general studies and a well-rounded education.

Now if the game companies truly want to get developers with the high skills and advanced education needed to work on cutting edge games, they need to pony up the money. The field is notorious for insane schedules, low pay, crappy benefits, and poor management. Get your own house in order before pointing blame at others.