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There is debate and discussion going on now, about games as a medium for telling stories. It is entirely possible that it will take a very rare breed to be able to integrate both together well. It is also possible that the two concepts work against each other.

A story is generally not interactive, with the storytelling forcing the listener/watcher to suspend control and follow, allowing to be captivated by the way is going on.

A game is a set of rules that govern an environment, and players try to manipulate the environment in order to accomplish goals.

You also have the play concept, where you drop players in sandboxes and they create their own goals, and change the environment to suit their whims. In the sandbox, it is hard to run narrative. Your focus is on creating a flexible enough sandbox the player ends up feeling that what they have is something worthwhile and engaging. For the person not engaged, without an internal drive, they will happen to not get into it all and wander aimlessly.

In all these, the goal is to captivate the consumer of the entertainment. All of which end up having a different ways of going about what they are doing. Businesswise though, we lump the last two, and the first (as interactive fiction) together under the broad category of "games". Even puzzle stuff is put here. Interactive fiction, games, and sandbox/toys/play areas are all considered "games".