See also Dragon's Lair:

> Most games in the Dragon's Lair series are interactive films where the player controls Dirk the Daring, in a quest to save Princess Daphne. The game presents predetermined animated scenes, and the player must select a direction on the joystick or press the action button in order to clear each quick time event, with different full motion video segments showing the outcome.[10] A perfect run of the 1983 arcade game with no deaths lasts no more than 12 minutes. In total, the game has 22 minutes or 50,000 frames of animated footage, including individual death scenes and game over screens.

https://en.wikipedia.org/wiki/Dragon%27s_Lair

> If the user is locked to a path, the game is called a "track ride". If the user can do whatever they want, it's an open-world game. Resolving that dichotomy is hard

Actual generative AI (as opposed to that in the OP) holds promise in solving this conflict by being the story teller in place of the game designer. I'm curious to know what's happening in this space.