Max Payne 3 is a recent example of a game that relies on cutscenes to fuel its narrative, and suffers as a result. The controls are constantly snatched from you, killing immersion.
Not played Max Payne 3 but I keep getting peed off when Uncharted:GA on the Vita keeps doing it every 2 minutes. My brother is a Sony wh0re and lent me his Vita to play it and I'm going through it to humour him but I just don't care for him. Maybe it's because...
Games fail spectacularly at making you care about their heroes. They're always cocky, wise-cracking assholes who are inexplicably great at everything they do.
Rpgs have always been the king of story telling, but caring about the character or the outcome of the narrative are 2 different things. FF7 is my favourite game of all time, I care about Cloud and the outcome. Second favourite game is Link to the Past, I don't care so much for link himself, but I care about the characters of the world, maybe that's the point of being a hero in those games. One character of recent games I do care about is Fenix and Co. When character X experienced a certain event in Gears 3 I cried, the second time any game has ever made me involuntarily leak water. First time was when Aeris died. I don't think you can generalize that games can't tell stories when there are millions of examples that do. Granted there are millions of games that can't tell a story, Did Frogger or Pacman have a story, it's a game primarily, We've moved on a long way from playing 1 level over and over again, we move from one scenario to another, Mario Bros story consists of, Princess is in another castle, so no, Mario games are not good story tellers, but they are not trying to be. GTA, is not a story telling game, never started that way, they just want you to have fun, but to stop you from doing anything with no sense of purpose or reasoning, they give you a story, they have progressively gotten better since the top down originals, but still, not a story telling game and was never meant to be. Gears, Halo, Creed, Uncharted and the like have a story to tell but have gameplay mechanics to give, I don't the the issue is stories cant be told, like Nico not regretting his actions during gameplay but on the cutscenes he does, its just the blur between the 2 that needs to be fixed, Portal and Valve games in general, as mentioned, get rid of this obstacle by telling you everything in game, great for immersion, but you can miss stuff so I can see why devs have cut scenes. This has been a talking subject between me and my mates for years so I'll stop talking as I've already went on too long lol