Pair production requires something in addition to the gamma ray. At high enough density (right after the big bang) it can be photon+photon.
On Earth pair production takes place by interacting with nuclei (necessary for momentum conservation). Typical result is production of electron-positron pair. The positron gets annihilated with an electron to produce two 511 kev photons, which is less than the original gamma ray (> 1022 kev).