This medium is not conducive to good storytelling.

I'm not sure I'd agree with that. I think it'd be more accurate to say that the stories it's well suited to tell aren't necessarily the same ones that get told in other forms of media.

I've been gaming for 40 years. I can safely say that one of the greatest mistake this industry ever made was trying to turn videogames into movies.

I think this is indicative of the underlying problem. A great many people in the medium don't actually understand how to make use of the medium. Compare the experience of Silent Hill 2 against the attempt to turn Silent Hill into a movie. It's such a textbook example of not understanding what makes the game work. Now take that misguided attempt to make a movie and stamp it back onto the medium of video games and you see the horror show that is most AAA games of the past 10+ years.

That said, I still believe that there are games that manage to tell a good story without relying on emergent gameplay/organic player built narratives. I'll not sit here and ignore the existence of games like Chrono Trigger or Planescape Torment just because I had a fun time in Planetside 2 taking a road trip on a bus with my friends instead of playing the game properly.