How much the story matters in a game depends on the type of game it is. Racing games, sports games, fighting games, platformers, strategy and other action-focused games don't really need a story if they have compelling and fresh gameplay, but if it's simple and effective enough it can only help to elevate the overall experience. But in Role-Playing and Adventure focused games, for example, the story can be as important to the experience as the gameplay.
In my humble opinion, if the gameplay is compelling...
game with a really great and meaningful story > game with a simple but effective story > game with no story > game with a weak or badly paced story
Storytelling in gaming has vastly improved in the last few years, with much better voice acting, body and facial animations of the characters, sound effects, camera work, visual effects, orchestrated music and so on... but games with a really great and meaningful story are still a rare occurrence (to me at least), much more so than in movies, books or TV shows, and most of the best action and adventure games have a simple/very simple/very very simple but effective story (or at least give you the option the skip long narrative scenes), that gives enough purpose to what you're doing in the game without ruining the immersion and the pace of the experience.
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