This is not a new concept in video games, usually known as "hardcore" or "ironman" mode. I think a core issue for games is that loss is fundamentally at odds w

This is not a new concept in video games, usually known as "hardcore" or "ironman" mode. I think a core issue for games is that loss is fundamentally at odds with player agency. In pre-written stories it ends up feeling cheap even if it was influenced by player choice. It is much better suited to games with emergent narrative, such as Dwarf Fortress, Rimworld, Crusader Kings II, or X-COM, but still stings more as an annoyance than something deeply emotional.