I worked as an engine / graphics programmer in the games industry for 8 years and the main reason for it is that 99% of devs are in it for passion not money.Not to sound too difficult, but why would game developers waste resources (and money) with high quality textures and shadows and things like ray tracing if "none" of their userbase can utilize it?
I was earning half what I could make outside of games, and the main reason I put up with it so long was that I could work on cutting edge, interesting stuff and get paid to do it. Lots of people in the industry work on their own projects for free too just because they love doing it. I guarantee that almost every game that currently supports ray tracing started with the programmers begging the business people to let them do it and not the other way around.
It's the same with the artists. They want to make mind-blowing high quality art because they love making mind-blowing high quality art. If you asked them to spend all day quickly knocking up ugly low resolution art most of them would quit.