Games as a Storytelling Medium was actually the title of my dissertation for my MA in Games Design (which was submitted in the format of a playable Neverwinter Nights module so that the techniques like branching and dialogue choices as well as the interaction between player and story could be demonstrated in real time while also discussing the techniques). So this is something of a specialist subject for me. I'm also a regular GM/DM for tabletop games and I've worked on a fair few story-focused videogames and seen a lot of the advantages and pitfalls of storytelling in that format.
I think that there are definitely games with a really good story, but that to make a really good video game story, you generally have to tell a story where what the player is doing is important (above what they're feeling) and that their agency is respected. If a player is given information, they will probably try to make the optimal decision for getting the best result and the reward of the thing they want out of the game. You can't force a character to make a bad decision, so usually when videogame characters get duped, it's because they didn't know the whole truth; not because they had the facts but made a poor decision based on emotional baggage, incorrect understanding of their own needs or biases they carry. If a character in a video game makes a bad decision based on emotions, players usually don't like it, because "I wouldn't do that! That's stupid! Why can't I just shoot the zombie! Stop crying!" which can be easily evidenced in a game like Final Fantasy VIII, which features a bunch of teenagers who make bad decisions and have emotional struggles, freeze up when trying to do their job etc. aaaaand which is a favourite punching bag of the whole internet. "Ugh Squall is so whiny, he's always crying about his childhood trauma and being moody. Ugh I can't believe Irvine failed to just shoot the Sorceress, he had one job. WTF why does Rinoa keep going off and trying to do things on her own and getting captured!?" Players don't like when characters they can control make bad decisions or have emotional breakdowns or misunderstand themselves, others or the facts because it feels like it's being forced on them, and chances are, with their detachment from the scenario and physical and emotional safety, they can think very calmly and with objective judgement.
The problem with the type of storytelling that feels good in a game, focused on an awesome protagonist who goes around making very optimal decisions and is almost never put out of action by emotional trauma and has a very accurate estimation of their own abilities is that it doesn't always feel so good when you're reading it with a character you don't control.
I love Undertale, but it wouldn't work well as say... a comic, in the same way that I adore Persona 3 and think it has a great story, but I don't think it makes a compelling manga or anime because the main characters are player avatars, not protagonists. They don't have a character arc. The OTHER characters do in both of those games, and the catalyst for their growth is the player character arriving in their life. In both games, the protagonist is an almost messianic figure who is seen as sort of otherworldly and has a strange wisdom and charisma. In many cases, making a story based on these kinds of games, the protagonist is given a very blank personality, and readers will feel like the character is really dull, and why does everyone care about them so much? Because in a game, the void in the personality of the protagonist is filled by the player's own personality, and having a protagonist who determinedly wants to run around collecting things and overcoming dungeons and telling the evil baddie who kicks kittens to piss off lines up nicely with what the player wants to do... but as a character to observe from outside.... hurgghhhh.... I don't care... nothing affects this person, they care about nothing, I don't get why anyone likes such a total void of personality and they learned nothing from this story and didn't change at all.
Satisfying narrative in Modernist linear media is generally about how a story changes the main protagonist because these narratives are about experiencing life and overcoming challenges and how it changes us. While satisfying narrative in games, which are often more Post-Modernist is more about how the main protagonist changes the world because the act of playing a game is all about you, the player, doing things, and having your choices impact the world makes it feel meaningful. This tends to make them kind of incompatible a lot of the time. It's why a lot of video game movies and anime aren't great except the very, very linear ones (Phoenix Wright was decent as an anime and movie, Unlimited Blade Works was a great anime- both are very linear, both feature a main character with a defined personality and some kind of arc.)