I've worked in video games for several years in Chicago, both at Midway Games, and Robomodo, and I've used a lot of different agile development practices in both places.
In my opinion every aspect of video game development needs to be fundamentally agile. Agile development is essentially a set of practices that allow developers to adapt quickly to changing requirements, and in video games requirements change daily.
At Midway we sporadically held scrum sessions, however it tended to be the first thing that fell off the table when the project was crunched for time. At Robomodo, scurm is a daily event, and an invaluable tool for keeping tasks on schedule and coordinating development between team members. Our engineering team is broken up into a series of small groups (each about 4-6 people), and each group has their own scrum meeting to go over all of the things that have been done, are being done, and still need to get done.
The design side of the company has less reliance on scrum. They still hold scrum-like meetings fairly regularly, although not daily, and we tend not to have elaborate design documents. In fact I'm not sure I've ever seen a real "Game Design Document" like you read about in books ever. Everywhere I've worked treats the game design as a living collection of ideas which is generally poorly documented.
Edit: I also thought I should add that after using scrum for several years I've realized there is no single "right" way to do scrum and have it benefit your project, but there are a lot of "wrong" ways in which scrum can hinder progress and be an all around pain in the ass. One of the things I saw at Midway was that scrum works really well if you can break your team into small groups, but trying to hold a Scrum meeting with 40 or 50 people is a total waste of time.
