See, the filter here that many employers will use is “motivation.” Games are hot now, and everyone says they want to be in the industry. But given that there’s no huge barriers other than time, the way to get in the industry is to just get in it. Don’t be fooled by the idea that the big companies are the entirety of games. Nothing shows actual motivation and passion more than just going and doing it. When companies see a young person these days without a portfolio, they ask themselves whether he wants to be in games just because it sounds cool. For better or worse, an awful lot of candidates show up these days with a degree and a dose of entitlement — “I did my four years, hire me.” Having a finished game or two to plop down on the HR person’s desk is proof of actual commitment to the craft and the hard work. ….
You aren’t like that — but you’ve been doing all that MUD work — but the MUD stuff is unfortunately not easily demoable. So you need some portfolio stuff that is easily demoable. I bet your odds skyrocket. And who knows, you may find that the small team indie thing appeals to you.
If you don’t feel comfortable with the game design side, I suggest you partner up with someone who does. It’ll both be a learning experience, and it’ll be to your mutual benefit in terms of portfolio development. And trust me, there will be no shortage of aspiring designers knocking on your door if you tell the world “I’m a coder who wants to help a small indie project.” Locate one of the many indie game communities out there on the ‘Net — there are a lot, and not knowing more about you, I wouldn’t presume which sort would be right. Go to a few Game Jams.
Above all, don’t give up. The paths to entry are wider open than ever, but that also means that a far larger percentage of those who try don’t end up making money or finding a career. Persistence is key.