As a software developer living in EU (I'm also making games, Devilize knows at least one of them ) I can confirm that. I'm making all sorts of software, from web productions to games and the most fun I have making games - but it's also the worst paid work with a lot of crunch times. It's also the only branche where you have to deal with angry customers of your customer.
I'd make the masters (at least in the EU) if I want to do more theoretical and specialized work. Otherwise it could make you over qualified, that's true.
IMHO nowadays it's not about programming languages but technologies. Learning a programming language is a matter of days, maybe weeks, but technologies and different libraries are a lot more complicated.
I'm so happy that The Guild 2 Renaissance is still being supported still, I'm wondering though if your company was going to take over in support of official server(s) for multiplayer, I know its off topic. I love the game though, it has so much potential I only wish the game had more of a mod community - seems a bit dry in comparison to PotES.
In the master aspect, your in the same boat as I, I desire it for my bosses job.
Last part, this is true, at this point I only need a book to reference syntax rules for any given language and I'm good to go, but technologies such as engines like the "Hero Engine" (being used for SWTOR) are sought after skill sets. If you can prove you have the skills you may have a job, only problem I see is that several technologies are not open to the public and require thousands of $ to acquire. Which means if your not already part of a company that is using it your not using it thus are not qualified. Course that's not true in every case but it is a situation.
I did want to add one more tip.
- Don't be overwhelmed when reading a job description with requirements or desires that seem godlike. This is the most optimal list that the business is looking for and 9/10 times will never find, If you can cover half the requirements, including the basics, on the list its worth submitting your resume for.