depends on the story and the type of game being made.
for something like lord of the rings, say, not so good. the song of fire and ice series is also probably not a prime candidate. i mean you can throw a game together that tells those stories....but its probably not going to do the story justice and it will probably be a crap game to boot.
but the stories in, say, metroid prime, HL2 or bioshock wouldnt work as well really on the big screen or in a book.
generally stories that were written for a book or a movie are not suitable for games. they are passive and linear so the creators are concerned about the pacing of the story, the quality of the writing above all else and so on.
in a game these are not of such a high concern. the story has to be flexible. a good story in a game will help compel you to go forward but it should never force it.
one area thats really interesting, and that can only be done in games, is emergent story telling. events that arent specifically scripted, they just happen of the course of the game. mount and blade (probably unintentionally) has both no story, an a massive sweeping tale of political intrigue that involves huge battles and much backstabbing. the game just has stuff happen over time. after every battle it also shows you the casualties and such like. these are prople you recruit so, in its own way, its also showing the hardship people go through in war.
one memory that always sticks out for me in skyrim is an epic battle with a dragon where one of the blacksmiths in the game was killed before i could take it out. i had bought and sold many items from him over a long period of time. i cant remember the ending to skyrim but i remember that fight.
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