Video games can do that because the experience of playing a video game requires interaction with the software. Music is something you play and it is the same thing every time you play it, there is no change, so if you have a way to play it, then there will always also be a way to reproduce it. It is not that the music industry is not that smart, there just isn't a good way around that.
Regarding some of the other issues raised in the thread
1. Beats. It is 100% correct that beats have become more electronic and much weaker these days. The nature of making beats using computers is such that it predisposes to producing music that is shallow and weak. But it is not the internet that caused this, it was the crackdown on sampling after the Biz Markie case which was in the mid 90s. The internet was becoming big in the late 90s but it was nowhere what it is now, however rap music was well on its way to becoming electronic-sounding in the late 90s. The sampling restrictions did not really hurt independent artists, and in the Bay many had already moved away from sampling but for the major labels it meant higher expenses for sample clearance and it was music from the major labels that first started the trend. Then, because the major labels put out the trend-setting material, it became fashionable to have electronic-sounding beats, meanwhile the internet was really picking up and music-making software was becoming more and more popular and that's how we ended up in this situation. Also, this played a role in the rise of southern hip-hop at the time as it naturally fit the sample-free model
2. Regional sounds. I see some people say that it is a good thing that we live in the post-regional era of hip-hop history but this is not at all the case IMO. Around 1996-1998 there were probably 10-15 well differentiated regional styles, each of which had something to offer and provided artists with a way to express themselves, not to mention that everyone was free to invent a new style and because it only needed to become popular within the local area it was much easier for it to get established. Now there are basically two main styles - harder music with heavy southern trap influence and soft music with heavy techno-pop influence. There are enthusiasts who stick to styles established in the 90s here and there and a few truly unique artists but they do not constitute the bulk. And it is not really such a good thing that everyone can be popular everywhere because artists who really want to make it need to make their music appeal to people everywhere and this is a sure recipe for watering it down - very few are able to walk the thin line between between being original and being popular.
At least the internet gave us an opportunity to get to know those styles before they went extinct.
3. Sales. There is no dispute IMO that the internet contributed a lot to the drastic decline in quality in the last 10-15 years - releasing 5 albums a year, moving from albums to mixtapes, recycling tracks, spending less and less time on perfecting songs in favor of recording more and more of them, those are all trends that are essentially responses to the fact that people do not buy albums as they used to. But there is no way around that involving keeping the current system that is based on buying "a product", whether it is a CD or an mp3 file - if you can download something for free, you're much less likely to buy it, and when the quality has dropped to such abysmally low levels, then you definitely aren't going to buy it. If the system switches from paying for a product to paying for listening time, i.e. the listeners pay for the time they spend listening to music and the artists get paid according to how much their music is played, then a lot of the problems could get fixed as such a system would reward investment into quality over quantity (it is unfair towards to artist if people download their music for free but it is also unfair towards people if artists put out CDs with a grand total of 2 good tracks on them) and would quickly filter out the bullshitters. And in that case the internet would in the end be a savior of music, not its executioner. This may be a too drastic overhaul of the industry for it to agree on it though