It's only intricate and complex as how you deem it to be, let's say you live in another universe and there's a game based on our universe complete with all our history and lore it would seem complicated from the standpoint of an outsider. Most of skyrim's history was derived from the in-game books and fans just documented it on the wikia, lore is essential to any good fantasy game.
Video games have always been a beautiful form of story telling, it gives the gamer a sense of fulfillment after finishing a story as if he lived it out. The lore of the game gives you the lay of the land, it gives you a sense of connection to the world.