To clarify for anyone who needs it, I'm not talking about the game being difficult; Having fights that actually kill you just for you to reload and try again. I'm talking about the story of the game ending in your defeat.
Not every story needs a happy ending. Not every story should have one. Not every tale should end with the protagonist victorious. Sometimes in life you are on the losing side, and some games should reflect that by having you play the losing side. Some stories, many perhaps, are honestly just better if you lose.
There are some games that have done it. There are already examples of it being a good idea. One the most renowned Xbox games is Halo Reach. True, that was a prequel, but I chose it as my example for the same of mentions that's really rather unimportant to the concept. Reach could have been just as good as a standalone game.
If nothing else, a story where you lose is great for catharsis. I find a lot of people underestimate of catharsis, but there's not much else to say on this point besides it being a good thing to get out of a story. I suppose in some sense maybe it's the basis of this post's desire, rather than just a benefit of it.
Even horror games where you are just some person against some monster you couldn't possibly beat, the game generally still ends with you either escaping or somehow killing the unkillable thing. You still win. Some games should be like that of course. Whatever the genre, there should be plenty of games that end in your victory.
But sometimes you really have no chance. Sometimes there is no hope. Sometimes all your efforts are an exercise in futility, and I really wish more games went that rought. Put us players up against impossible odds, and actually have them be impossible. Tell us the story of a land being taken over from the perspective of the side that lost. Give us horror stories where the unkillable monster actually is one, and we die at the end. Tell us the tale of human extinction, not people who survived what almost was one. Show us the succesful apocalyse itself, not the aftermath of a failed one. We've all played plenty of games where you come in as some kind of rebel, and slowly take over the city / island / country / whatever it is this time; so how about some more games where you play as the person/people watching their empire fall into ruin. Let us play some games from the other side of that story we usually are.
Don't always let me be the hero that proves something's reputation of being unbeatable wrong, sometimes I want to see the story of why it has that reputation in the first place. Sometimes when i'm going through a world full of npcs telling me I can't possibly beat the villain of the story, I want them to be right. I want more exercises in futility.
I'd ask you to give my other examples of such games I could play, but if you mention any I haven't played before that would be a major spoiler, for ones that aren't prequels to something anyhow, so please don't.
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