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I think he's talking about stories in video games, and I tend to agree. Anyone who's read a half decent piece of literature can recognize that story telling in video games is shit. The creator of a video game gives up lots of control over what he can do with a video game for the sake of interactivity. I don't think we'll ever be able to see a video game with a truly great story. In order to tell that story, the player's going to have to give up practically all his control over what happens in the game, and then it's not hardly a game at all anymore. Plus, no the writers of the stories for video games are hardly world class. I cringed when I read IGN's review of GTAIV and had to deal with their gushing over the "amazing writing."

The problem with video games being art (art in the same sense a painting, movie, or piece of literature is art, NOT the way driving car is an art) is that there is always something that takes priority over expression: fun. Games have one main goal in mind: for them to be FUN to PLAY. Change the main priority of a game and it's no longer a game. As long as expression takes a back seat to fun (read: as long as video games remain games), they will never be art in that sense.