PC games don't currently use wma lossless do they? Just making sure it wasn't my imagination b/c to me games from back in the day that used Redbook sound a hell of a lot clearer and have much better dynamic range. Dynamic range in recent pc games sounds very compressed (highs and lows are very limited), so I don't know how it they couldn't be using MP3's.
You're really getting mixed up between dynamic range compression and the file space saving sort. They aren't particularly linked at all.
Similarly the redbook standard has nothing to do with dynamic range compression, all the redbook is is a standard set of specifications of what a CD is (from basic stuff like maximum length/number of tracks to all the detail like dimensions of the data layer and pits etc.)
Dynamic range compression is the act of taking a sound signal and proportionally boosting the quieter sounds to reduce the overall loudness variation of the signal, this isn't nessesarily a bad thing, for instance it rather needs to be done (a little) for radio play since FM can't handle the same DR as CDs. It can also help things sound a little better on poorer sound systems.
However it can also be completely overdone, and your average modern CD is hugely compressed in this sense (see 'loudness wars' on google/wiki). This isn't a result of any mp3s or filesize compression or anything like that, it's simply a case of poor mastering, rather in the way all the TVs in a shop have the colour severely boosted and audio systems from the more dubious types such as Bose and B&O will 'enchance' sound signals by 'brightening' them as to the normal person, in the short term, these things look and sound better.
Compressing an audio signal with mp3/wma etc will not usually result in dynamic range compression. Infact, if you wanted to you could encode a 24bit signal with mp3/wma and the resulting file could produce a larger DR than a CD. Heavy file size compression with a low bitrate will certainly result in the encoder ignoring the quieter things if the signal is complex, but even this doesn't really count as DR compression since you're simply losing the quieter sounds rather than making them louder.
Lossless compression (as wma or flac etc) will not affect the signal at all, you get out what you put in. Just because whatever modern games you've played have rubbish DR and use .wma doesn't make these linked, it just means the sound production was rubbish (or aimed at a market segment which didn't include you anyway).
and yes, whatever film soundtrack you have an old cd of will sound better than whatever game with horribly DR compressed sound you're comparing it to, but if you were to compress that film soundtrack into lossless .wma or flac it would still sound just as good. Infact it would still sound much better than the game even if you encoded it in some 320/256kbps VBR mp3/wma etc.
And as for PC games now vs the past, on the whole sound quality has gone up, I remember very few PC games that used pure CD music anyway, it simply wasn't practical since you couldn't do anything dynamic with it really, and before they used audio compression techniques they used MIDI for music and sound would have been .wavs but almost always reduced bit/frequency