Developers are still figuring out how to tell stories in an interactive medium, the industry is still relatively young.

Also, a game story doesn't have to be particularly good as the interactive element is what draws the player in and immerses them in the world. Even some games that are applauded for having amazing stories actually have simple or mediocre storylines that are told very well. I think Mass Effect 2 would be a prime example. Simple over arching story told brilliantly through the individual character motivations.

In many ways, games have yet to find storytelling methods that don't heavily borrow from film or books. Storytelling is usually done through cut-scenes or through text. Some games use the interactive medium more uniquely like Half-Life 2. The story is told completely in first-person and you are always in control. It's up to you to observe the details of the story through the world. And when they do employ cut-scenes, it's because Gordon Freeman (you) have physically lost control (e.g. your trapped, or something is physically holding you in game).

I don't think it's the story that matters so much as the telling of the story.

I thought Uncharted 2 had a really average story and was impressed with it. But I still thought it worked well because of the humor and incredible voice acting. The top notch character models didnt hurt either.

But when you look at a game with a truly great story Mass Effect stands out as the undisputed champion. The scene where Shepard talks with  Sovereign for the first time was the most gripping story telling I had ever seen in a video game after 25 years of playing them. And then they went and topped it in the same game when you meet Vigil on Ilos. 

As for crappy storyline what you gonna do? Video games are still on the level of B movies in terms of story, but they sell well regardless. So why would developers bother tweaking a formula that already works. Very few try, and even fewer succeed.

Castlevania Lords of Shadow is a good example for a great game with a severely messed up story.

*might contain SPOILERS*

the story is so convoluted and told in the wrong order, i don't think anyone can grasp it in the first playthrough. especially if they are a newcomer to the franchise.

it's never properly explained what Gabriel actually wants to accomplish. save the world from darkness? save his wife? find his lost childhood sleigh? what's with the mask? Of course it is explained eventually but just not in a good way.

and don't bring in surprise bad guys that have never mentioned throughout the game. that is not a genius twist, that is just bad storytelling.

IMO no game story has ever surpassed the one found in Final Fantasy VI.

There's a couple of key things that impact story in games:

1 - Focus.  The focus of almost all videogames is the gameplay, not the story.  It is almost always a secondary consideration.

2 - Role - The role of a story in most videogames is to provide a framework for the gameplay.  Most stories are therefore highly derivative of other mediums that seek to redefine story delivery and concepts.

3 - Talent - The truth is that in most cases videogame stories are being written by low level talent.  If you're a serious writer wanting to set the world on fire, you're not thinking about wirting for videogames.  This has been improving but it must be recognized the top talent in writing is focused on other mediums

4 - Pacing and Delivery - Narrative and story pacing is different from videgame mechanic pacing and it is tricky to balance the two.  Consider that in a videogame there is a need for a lot of gameplay that is mostly superflous to story.  Consider Lord of the Rings across three mediums.  In the book, the Battle of the Pelnor fields covers maybe 3 to 5pages of actual combat (from my memory anyway out of over 1,000).  The focus is on the characters and before/after with a little bit about what happens during the battle.  In the film, which is visual and arguably closer to videogame format than book, the battle is expanded enourmously and takes up a lot of screen time, with the character elements reduced around it.  In the videogame, the battle would be like 95% of the title with some simple cutscenes.

Now with more money, bigger sales, etc. things are improving, but even so consider sales of essentially non-story driven games vs story driven.  The focus is more on getting your multiplayer balanced or sorting our your skill tree than story, pacing, dialogue, character development, etc.

Part of the reason Uncharted 2 was hailed as such a pinacle, often outside of the gaming reporting spehre and in mainstream newspapers, etc. is because it probably does represent a high point of a developer finding a much better balance between gameplay/story pacing, working out how to mix narrative during gameplay and develop characters, and giving enough attention to dialogue and voice delivery.

A good example for me from Uncharted 2 is when you have to carry Jeff and fight.  At the same time, ND used that sequence to:

1 - deliver great gameplay and make you enjoy the dramatic moment interactively as the hero

2 - vary the gameplay - instead of constant, fairly repetitive gunplay a'la a lot of FPS suddenly I only have one gun and I have to deal with a slow burden.

3 - expand Nathan's character.  It matters to him to try and save Jeff.

4 - expand on Elena and Cloe's character.  Cloe thinking of herself, Elena aligned to Nathan.  Cloe seeing Nathan's acts as a sign of weakness and lack of commitment to her, Elena the opposite

5 - make you care about getting Jeff to safety and allowing you, during actual gameplay, to evaluate Elena and Cloe's different characters and realise who is better suited to Nathan really and the more natural partner for him.

6 - continue the story in a flowing manner.  This sequence flows naturally from the previous sequence and serves as a great way to mix all the above goals

Then, when the next cutscene kicks in, well, most people should care a lot about what happens and have their views on certain characters firmly underscored.

Now, very, very few games in my experience get remotely close to that level of execution between story/gameplay.

Uncharted 2 is a B movie, but as a videogame ND showed more understanding and control of mixing the two mediums than many videogames that clearly had loftier aspirations - for example Heavy Rain, while at times even better, also messed up its story plenty of times as well.

For things to improve we're going to need to see better talent - either attracted to the medium or developing from within it or a mix of the two - and developers deciding up front that story is important and has to be integrated to Uncharted 2 levels rather than serve as a framework that progressing in jumps and starts between cutscenes that deliver a tiny bit if simplistic narrative.

 For me the best part of the Uncharted 2 story was how simple, basic and easy to follow it was. It's certainly not going to win any awards for originality or depth - but the fact that you could easily follow it alongside gameplay without much thought was what I liked so much. For me it would have interfered with the experience if I kept having to take 5 to remember who betrayed who and what someones motives were - for that game I think the B movie quality was just right, and worked so well because it was told within gameplay so well.

 I would love to play game with much better story behind them though, just not Uncharted 2, as I think that benefits from it's simple to follow alongside gameplay formula. 

 I've not played Heavy rain, RDR or Enslaved, which seem to be the leading candidates for story telling yet, so I don't think I can add much more to this thread. I think we're getting better and better at stories though, but as someone said, we're still thinking up lots of different ways to tell stories and no ones sure how is best.

Heavy Rain, FFXIII, MGS4, Mass Effect 2 and Uncharted 2 all tell stories in completely different styles and all have strengths and weaknesses. I don't care provided no one ever attempts FFXIII style of 'Read a **** ton of convoluted bull****' again.

Because videogames are made by videogame nerds who don't know how to write a good story.

However, a big problem is that you can't just tell a story in videogames. Either you let players do what they want to do (making telling stories very difficult) or you script everything perfectly and you make the game boring. Obviously those are two extremes, but you can see how developers aren't just telling a story, they are making a game.

Honestly, I think Miyamoto does the best job telling stories. Quick, simple, and he never lets you down

I don't care about stories. As a gamer I make the stories in the game. The game is supposed to merely provide me the template in which to create my own personal stories. Now, I don't mind a back story within a game to help explain who I am, what this world around me is, etc. What I don't generally like is a game pushing its story too much on me, because then you end up with a very linear game and I don't usually find those types of games very fun.

Story: Why the F does it matter?