This seems incredibly unprofessional to me. I'm an indie gamedev; my friends are mostly 4chan posters, perverts, and unemployable layabouts. WE know not to tell deliberately offensive jokes in a professional context, how can Crytek's staff not?
I don't have much experience looking for work with normal employers, so I can't give you anything firsthand about how pervasive this sort of thing is, but what you describe seems abnormally bad.
One thing to note: AAA development (at least in the US) is known for terrible working conditions. If you want to go into game development, make sure you get a good idea what the studio you're applying to will actually expect before you accept a job.
A meritocracy that cares more about work quality than race or sex or people skills sounds good, but that's not what Mr. Digital interviewed at. A telephone interview is a test of PEOPLE skills, not code skills. A meritocracy that cared about work quality should have managers who can stick to the deadlines they set - not arbitrarily move them up. A meritocracy that doesn't care what race or gender you are isn't going to tell the interviewers what race or gender you are. And I'd expect a meritocracy that cared about work quality to have someone in the typical set of four senior developers who can figure out the company's pet phone software.
I don't have much experience looking for work with normal employers, so I can't give you anything firsthand about how pervasive this sort of thing is, but what you describe seems abnormally bad.
One thing to note: AAA development (at least in the US) is known for terrible working conditions. If you want to go into game development, make sure you get a good idea what the studio you're applying to will actually expect before you accept a job.