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There was a point in time when better graphics meant progress since the expectation of good story wasn’t there at all.
Super Mario never had a great narrative. Unreal tournament 99 was mostly a tech demo that blew up.
Few games like Baldurs Gate took it and ran, but they’re a few.
Until 2002, narrative wasn’t the key to a great game, and it was already 20 years into the industry
Games like Sam and max, beneath a steelsky, it came from the desert, Dune, Darkseed, there are so many counter examples to your claim
Look at Betrayal At Krondor, amazing story that rivals and beats most fantasy today.