I have experienced the harsh work conditions, even though I had it pretty easy compared to some of the other game teams.
I remember one example where I worked my butt off on a game from start to finish, pulling in weekends for 2 months, with the odd Sunday off. After the end of these projects it's common for the company to give us a few days up to a week of free time off, but I was immediately signed onto another game that was just in pre-alpha stages. I worked 7 weeks in a row, 7 days a week (even on stat holidays), and didn't get paid anything extra, or any overtime pay on top of the meagre salary (
a full $30k less than I make now). Right after that crazy project, I was assigned to bug fix random games, and the managers guilted me into working more overtime (again, unpaid overtime). My name won't even go into the credits unless I work a full month on the project, so nothing will come from this extra hard work. Not only that, I was laid off 6 months later, where a fresh batch of hungry fresh graduates were willing to take my place to save the company $5k in salary a year.
But after all those many years, I still missed the environment, and still consider my true "home" in the game industry. I do similar programming tasks where I am now, and in a senior position, making a lot more money. There's little to no overtime, the company stresses great work-life balance, the benefits are great, the amenities are kick-butt... it's just not as "glamorous" as games. I'll take a more stable career over a "fun" job any day of the week now, and getting laid off was the best thing to ever happen to my career, amazingly enough.
I encourage everyone to do that at least once, though, and experience what goes into making a game from start to finish. Then you can get an appreciation about how games are made from concept to finish, and all the people that are involved in the tiniest to the largest of ways. It will make you think twice about complaining when that next big triple-A game gets delayed, knowing the sweat that goes into developing them
EDIT:
Interestingly I also heard bad working conditions were rampant in Rockstar Vancouver's office during the development of Bully. Tsk tsk, Rockstar and Take2.
EDIT 2:
Just reading that link has reminded me of several stupid things at my last employer. I remember seeing a manager's MS Project screen on his computer at the beginning of a project, and he had already scheduled in overtime and crunch time. Funny thing is, they would always stress about how the overtime is because of improper time estimations or because of other controllable phenomena, but in reality they plan for it every time from the very start.
I had a conversation with him about how to reduce overtime and crunch time, asking him if he and the other managers took learnings from previous years and adapted their schedules accordingly (i.e. less time for this, more time for that, do this earlier to get it done faster, etc.) He looked at me like I was questioning his ability as a manager and was offended. Hahaha!

Senior Web Developer - Nokia