Comment Shadow of the Colossus (Score 1) 64
your example smacks of melodrama
The death of Aeris in FF VII is far from melodramatic - a notable feature of the game is that the protagonist, Cloud, is generally understated in his response to the situations he finds himself in.
I was thinking less along the lines of payoffs (positive or negative), and more along the line of motivation
I recommend Shadow of the Colossus as an example of a game where emotional motivation is central.
I wouldn't say it impairs the player's performance, but then it shouldn't, IMO. It's not in the player's interest to have a conflict between playing the game to its fullest, and playing it well.