Not really. Writers write the story and game designers design the game. Poor story is a direct result of bad writing, which has pretty much nothing with designers working on the aesthetics of the game. Not that I don't agree with content over graphics. But if something is poorly written, it's the writers doing.
It has everything to do with designers working on the aesthetics of the game.
Look through your collection of games. Pretty much every one of them can be boiled down to "You have a weapon. Kill everyone."
Why is that? Is it because game studios hire monkeys?
No. It's because we, as gamers, DEMAND (!!) something new and shiny with every video game. It's because we go bananas if the graphics of a game aren't as good as every other game that's out currently. This, naturally, diverts resources and attention away from the story department. When a big gaming development wants to make a game, they don't say "Hey you! Write a story for this game!" and call it a day.
Look at E3. How many presentations focused on story and plot and character development versus how many focused on graphics and gimmicks? (Hint: It's split 100/0)
Look at Psychonauts: An independent game lacking in graphics, but was universally praised for it's characters and story by critics. How'd it do in sales? It shipped less than 100 000 copies, caused the CEO to resign, and made Majesco drop out of the big budget game marketplace.