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I agree that games, tv, movies etc should all focus more on character and emotion to have higher immersion and enjoyment for viewer.

Story is not some elevated concept. It is a simple concept that exists at all levels (story being told, story of it being watched and interpreted, storise being implied or assumed, etc) and I don't think saying shouldn't try to tell a story means that a story isn't being told. I think Kojima meant his goal is to achieve immersion on character/emotion level... some connection between player and the character being controlled.