Funny. As I read about Yahtzee's tale about the movie Next and how it would be good to be transcribed into a videogame, one actual game came to my mind that did the exact same thing.
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I won't explain why because it is a big part of the plot but the game did just do that: Show your deaths as failed universes where your actions were wrong. And that knowledge even became important in the plot. Failing was nearly as critical as winning in the game. But it wasn't rewarding you with failure, by all means no, each failure hit you hard when you thought about every little thing you did in the game that might have activated the Failure state. And it made you progressively more paranoid in your second attempt.
When it comes to this article, I think this game does everything Yahtzee is asking for.
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999: Nine Hours, Nine Persons, Nine Doors [http://en.wikipedia.org/wiki/999:_Nine_Hours,_Nine_Persons,_Nine_Doors]
I won't explain why because it is a big part of the plot but the game did just do that: Show your deaths as failed universes where your actions were wrong. And that knowledge even became important in the plot. Failing was nearly as critical as winning in the game. But it wasn't rewarding you with failure, by all means no, each failure hit you hard when you thought about every little thing you did in the game that might have activated the Failure state. And it made you progressively more paranoid in your second attempt.
When it comes to this article, I think this game does everything Yahtzee is asking for.