The title is pretty much self-explanatory. Having in mind that the markets (itch.io, steam, google play, apple store etc) are global, how the gamedevs in expensive regions survive? For example average hourly earning in UK is around $12, US - $7. But in countries such as Brazil and Bulgaria is around $2. And in countries like Iran, Nigeria and India is above $1. The cost of living moves accordingly.

It is way more cost-effective to live in a poor region if you're making games. Software doesn't have any barriers such as capital investment and require little investment and because of this the markets are flooded. If all your games generate $1000 monthly, you better live in a poor region. It's hard to survive in a rich region only by developing games.

What are your thoughts on this? All personal experiences are welcome.

Although what you say is true, keep in mind that some things you may want to do might not be available in some countries, especially poor ones.

For example, I grew up in a certain country, and as an early adult I wanted to put a game I was making on kickstarter. After a bit of research, I found out kickstarter doesn’t support my country (not sure if that has changed now).

Apart from that, yes living in a country with low cost of leaving would be better financially (assuming you plan to survive with game dev). But that comes with living in a poorer place, where the way of living might be not as comfortable as the more expensive places.

Assuming one is an indie game dev with a very small team, or alone, there certainly is no reason to live in an area like Silicon Valley, unless you want to make new connections.

I moved from California to Nevada  several years ago for the lower cost of living. My rent in Las Vegas was half of that in San Diego which in turn was less than my rent in Silicon Valley. Similar story if you're buying a place. However, my indie income doesn't cover living expenses here, either. I still rely on contract work to pay the bills, and it's a lot easier to find work if you live where all the potential clients and employers are. Even now, my one regular contract is with a client  in California, and most of my professional network is still there.

Life is cheaper in poorer regions but wages are lower and infrastructure (internet etc.) is often in a bad shape. Also alternative work opportunities are higher in more developed countries. I can't make a living out of my games anyway, so I stay in my rich country and profit from the excellent infrastructure.