Wow. Where do I even begin here? Let's just start randomly.
1. Not all games and companies are required or can even have huge budgets for audio anyway. Not all games are AAA Titanfalls and, as much as composers like to bill how important music is to the game, it's really one of the least important aspects in the fundamental construction of the game.
This is demonstrated by the MUTE button of a TV remote control. If you turn the graphics or TV off, can you play the game? If you turn off certain layers of the programming code, can you play the game? If you turn off or unplug the controller, can you play the game? If you turn the music down or off, can you play the game? That one, yes, as many gamers do at one point or another, it's just the experience of playing it that diminishes.
Music is most definitely important to a game for many reasons, but from the perspective of the people building it, it's essentially garnish. You can't blame companies for favoring programmers and artists. You have artists and musicians but no programmers, you have no game (you have an album). You have programmers and musicians but no artists, you have no game (or something like Zork). You have programmers and artists? You have a game, it just needs some royalty-free tracks or something.
2. The whole problem with musicians getting what could be generally considered to be "fair" rates for music is that it's basically trying to put an objective value to highly, highly subjective work.
In fact, this simple infrastructure is why the gap of success from artists is so widely varied throughout history anyway. Art falls in an odd place as far as being essential for humanity to live. Without art, you're not really living, but you're not exactly dying without it either. An example is: I'm in the market for a trailer song and I have one guy who wants $4,000 for it because he uses a live orchestra and one guy who wants $800 for it because he uses EWQL I listen to both, and they both sound like what I'm looking for and I'm not enough of an orchestral obsessive to really REALLY hear the difference, which one do I go with? Do I take the smart option and go with the guy who has the talent to make it sound real enough to me, or do I take the expensive option to help out an industry I'm not part of in the first place?
I'm pretty sure neither has intentionally paid a much, much higher price to make sure the industry I work in is healthy...
3. On that point, a lot of this kind of talk goes into how much musicians SHOULD get paid because musicians should get to put the value they want on their work, but it never goes into what justifies a musician to charge professional rates in the first place. What actually qualifies someone to be a professional musician in the first place?
Are they required to be licensed by the state like many other professional freelance fields? Are they required to have 2 years orchestration residency, 2 years apprenticeship in electronica, 1 year experience performing live? Are they required to have the full range of professional grade music hardware and software? Is it illegal to do music without Omnisphere?
Nope. If you wanted to, you could just quit your job, spend all day doodling around Fruityloops, charge a high price and that's all you'd have to do to call yourself a professional. What you're telling me is that I should charge the same amount of money that Virt charges for music, even though I'm not even 1/10th as accomplished or versatile as Virt is, and there is absolutely nothing requiring me to be as good as Virt is to justify that price.
Wouldn't that seem like a problem in the infrastructure there?
4. And on THAT point, the music industry is already fucked up beyond all recognition right now, how could it get hurt any further?
Music as an industry has NEVER been good. I don't think there's been one time in history where there has been a huge demand for musicians and not enough supply. Maybe the 60s, I'm not sure. It is a job that can safely be assumed will never get any easier as the ability to make it gets better introduced to the general public at large. More artists means more competition, and there's only so much $$$ to go around for that.
5. Oh, and btw, a little known thing many composers, even ones that talk about "undercharging killing the industry", engage in is... well, undercharging.
Anyone with even a lick of sense knows how hard it is to make money in this industry, and it therefore follows that "well, even a reduction rate is still better than nothing." In my wheelings and dealings, I've nearly hired two quite famous VGM composers (I won't name names out of courtesy) to work with on previous things, and both offered, straight out, to work with major reductions to their rates. Hell, I've even been given reduction rates for VST sample sets! From successful companies!
Working within a budget hurts the industry? Give me a break. Let's examine a hypothetical scenario.
FurryFreedom: Hi, is this Neblix?
Neblix: Yes
FurryFreedom: hey man, I'm a big fan of yours from ocremix. I have an indie game coming up and I need about an hour of music. Would you be too busy these days to hire?
Neblix: Nope, I'm available!
Neblix: I charge $800/minute. That includes mixing and mastering, and is royalty free. At 60 minutes, that comes out to about $48,000.
FurryFreedom: Oh... I only have $20,000 I can spend on a soundtrack.
Neblix: Ok, well, $800/minute is a firm price. If I reduce it from there, the industry will collapse ass over elbow. $20,000 will get you 25 minutes of music though.
FurryFreedom: Umm... no, I kinda need a full hour of it.
FurryFreedom: Thanks anyway, I'll keep looking.
Are ya seriously telling me you wouldn't take $20,000 over NOTHING? Just to help an industry that's already in a slow terminal slide that this one sacrifice could not have possibly saved?
Sorry man but... no, just no. Undercharging doesn't kill an industry. If it did, nothing you'd ever go to a store for would EVER HAVE SALES.
I suppose I could've just saved myself a lot of writing by just writing that one paragraph, but, eh, there it is.