Graphics are important. If you don't think so, just look at a game like Okami. Take away the cell shaded masterpiece, and all your left with is a standard action game with only the celestial brush as its saving grace. Shadow of the Colossus? Take away the powerful graphics engine and it loses all its sense of scale and wonder and becomes a boring plod through a featureless world. Take the blood and guts out of mortal kombat and you have a terrible fighter.
Point is, the good games of old were praised for thier graphics as well, or does nobody remember how psyced people were for Donkey Kong Country's graphics.
Story on the other hand, is one of the least important factors out there. (I'm generally loathe to agree with 2deluxe, but its a valid point.) For instance, Tetris. Tetris is a true classic, but there isn't a story to be found. Guitar Hero has no story, yet is still a good game. Most rpgs these days are sorry, tired ripoffs of animes, yet some of them are still great. Most action games are just rip offs of cheesey fantasy novels, but Zelda is still a classic. WWII shooters? What can they possibly tell that they haven't before, yet Medal of Honor is still fun. A great story can defineately add to a game and help it transcend above being mediocre, but its not essential. (notice how most ratings don't have a story section? Its because a good story is a bonus.
Of coures, getting back to graphics, a good game doesn't require great graphics BY TODAYS STANDARDS. It does, however, require the graphics to fit the game. An fps these days need realistic graphics. An rpg needs more fantasy-like graphics, and an action game needs good looking enemies. Just think, if while playing Metal Gear Solid, instead of evading living, breathing soldiers, you were running from a block of wood, you'd be more likely to put the controller down and play something else, no matter how good the story was.
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