In existing games it's done in cutscenes. You have emotive story cutscene, followed by action gameplay, followed by emotive story cutscene, followed by action gameplay... The emotive 'artistry' is often interspersed with the gameplay elements, rather than fundamental to it. Of course, some artists create art within the game, like ICO. But if you want to move things forward, and get that emotional power of the cutscene throught every part of your game, rather than just at brief intervals, you need something capable of the cutscene emotional power in the game engine. That means at least having the quality of the scripted animations within the game. The closest I've experienced to that was FFX's emotive actions, which showed how the characters felt, but were very wooden and didn't flow too well. Idon't recall any game with behavioural animations blended in with the game, so the way they walk, run, talk, stand still, etc. shows their feelings. That's one example of where more power can bring more emotional involvement. There's probably a lot of others too. Wii on the other hand will perhaps be stuick with the old techniques of interrupting the game to move the story, which is quite like the old silent movies with the interruptions in the action to show the dialogue.The PS2, Xbox, and GC can all do "emotive." They just can't do "lifelike." But you know what? It deesn't matter, because in video games, the emotive parts happen in cutscenes, which often are CG...
"Right, stop the movie here to tell the audience what the baddy is saying. Okay, start the movie again, and show us some chasing. Stop here and show what the damsel is saying."
"Right, stop the game here to show the audience what the baddy is feeling. Okay, start the game again, and have some fighting. Stop here and show what the hero is feeling."