People come up with complex shared narratives in multiplayer sandbox games like Minecraft/Roblox/Kenshi/etc. all the time.
In the single player realm, there are games like Dwarf Fortress, Caves of Qud, Kingdom Come: Deliverance, etc.
Point is, the landscape of what "narrative" means in video games today is broad and deep. If none of those are even remotely like what Crawford thinks is "right" - and he's not able to design a game that meets his standards himself - I'd argue his definition of "right" might just not be workable in the first place.
There's a kind of people who want video games to have all of the possibility, depth, and meaning of real life. A game where you could do anything, be anyone, but still have consequences matter and be far reaching (like "Roy: A Life Well Lived" in Rick & Morty). Well, that exists, it's called real life, but you're not going to recreate it on a computer screen.
> People come up with complex shared narratives in multiplayer sandbox games like Minecraft/Roblox/Kenshi/etc. all the time.
That sounds no different from comming up with narratives on a playground. That's not a designed narrative, that's people making up a narrative where none exists. Hey, the jungle gym in our secret base! The swings are space ship! The ground is lava!
I think we can all imagine what he wanted to build even if he failed to come close to building it. He wanted to make a story machine where you could play the game and converse with the characters in a free flowing way yet still have the game provide a setting and conflict. Imagine talking to characters in the holodeck on Star Trek. Ideally where, over the course of the game, the dialog and interactions are designed in real time within the constraints of the setting. And, the way you treat characters influences how they react. Be a dick to the bartender, all his connections are harder to get consessions from. Be nice to one romantic partner, get snubbed by another, etc... And not just by canned responses. Tell one character a piece of info and it gets leaked to their closest contacts who then change their behavior/dialog based on this new knowledge.