I agree with him in that not every game needs a story, but often stories are a good way to immerse the player in the game, making the game more fun. He points to old platformers and arcade games saying that they were fun without a story, but those are mostly skill reliant genres that don't need immersion to be fun. Modern games in those genres tend to be pretty light on story elements as well.

Stories can add a lot to a game. Some examples: the historical context is nice in the total war series, portal 2 would be very different without glados talking to you, battleblock theater would be just another platformer without the humor elements and tomb raider wouldn't be tomb raider without the context of raiding tombs. In general, I think devs have been doing a great job of making story more optional by letting the world design speak for itself and making things like lore books.