It's also easier to market characters and games series with a desirable story arc than not.
You would think that, but it isn't necessarily true. Castle Wolfenstein and Doom had only the barest vestige of a story and nothing that could truly be considered a story arc, and those did just fine.
The first Halo compared to the first Uncharted featured virtually no story at all compared to the rich storyline in Uncharted. Yet the Halo series and it's minimalist story telling continues to attract consumer attention far more than Uncharted and its much more expansive story telling. I believe the minimalist Halo: Combat Evolved has sold quite a bit more copies than the story rich Uncharted along with more recent big budget story based FPS shooters (ME2 and ME3 for example or one of my personal favorites, Bioshock). The mega-blockbuster COD series at least features a somewhat more fleshed out, if somewhat disjointed story. And people that are fans of the single player likely wish less time was spent on the story if it could have meant there was a longer SP campaign. And even its story is considered quite bare bones by many. It could be argued that if you reduced the story down even further to just small cutscenes every 3-5 missions to string together the mission that it would have sold just as well.
It's also interesting to note that the Halo games that attempt to focus more on the story (ODST and Reach) arguably didn't perform as well as their more gameplay focused predecessors.
Granted that may be due to the lack of Master Chief, but Master Chief is a rather anonymous and silent protagonist anyway which lends very little to a rich storytelling experience. Kind of like the Doom Guy, another series with very little in the way of a story or story arc.
Hell almost all of the good story telling action games from the past are dead and buried. Noone Lives Forever (fabulous), Wing Commander, Interstate 76 (best driving game ever), Thief, System Shock (at least Bioshock is somewhat of a spiritual successor), Half-Life (over half a decade since HL2 Episode 2 with no word on episode 3 or even HL3), etc.
And the best thing about all of the above was that the storyline never interfered with the gameplay. It was either part of the gameplay (NOLF, Half Life, System Shock 2) where you could completely ignore almost all of the story by just not bothering to listen or look at items in game, or in cut scenes between levels (Wing Commander). And most importantly, no F$#ing QTEs.
I don't foresee a scenario in which the industry goes to a gameplay only for shooters, action, platformers genres.
For AAA games, yes, that's highly unlikely. But I do think we'll continue to see some of the best selling "action" games featuring only a light veneer or patina of a story versus the rich story telling of many others.
Noone is arguing that an absolute Zero of storytelling is necessarily desired for all games. I think the main argument is how extensive the storytelling is and whether it impacts the gameplay negatively when too much focus is paid to the storytelling over the gameplay.
And obviously there are people that are going to prefer rich story over gameplay. There's nothing wrong with that.
And, as a last bastion, thankfully there are countless games in the indie and low budget scene (XBLA, PSN, or PC) that focus almost entirely on gameplay with very little time spent on story. Dungeon Defenders and Legend of Grimrock come immediately to mind. Both games would do equally well with or without their light veneer of a story which most people ignore anyway. I can't even remember what the story was in Dungeon Defenders, despite spending nearly 100 hours in it.
Regards,
SB