Story telling that begins in the middle of things is called "In medias res" and is a good way to write a story or novel. The backstory and background are usually explained as flashbacks or by some other sort of mechanism and are integrated into the story.
A story that begins with "Once upon a time" can be quite boring and then you have all the back story explained and by the time you get to the action well, chances are you won't because you would have stopped reading.
An example of "in medias res" would be the first starwars movie. It started with in the heat of a chase while the immediate backstory and prologue was zooming out into space. Examples of traditional movies that do not employ "in medias res" are many horror movies where the protagonists meet each other in the their dorm rooms just before summer break and then head out to some obscure dangerous place only to find out it is haunted/dammed/'filled with psychos' and die.
"The walking dead" uses "In medias res" and employs a lot of flashbacks. The first episode of the first series finds Rick waking up from his coma (hmmm nevermind how unrealistic that is...) way into the zombie apocalypse with no backstory or background regarding the zombie apocalypse. The viewers are thrust into this world immediately. And then we get explained how things happened. (They actually employ that a lot although if you examine other episodes).
In gaming it is quite hard to implement "In medias res" in games because you usually have to start from scratch.
But at least story-wise StarControl II started "In medias res" and we had the background story explained to us as we explored the galaxy and fought the Ur-Quans. It was a great experience learning about the background story in such a way, rather than having to read hundreds of tomes scattered all over the world as in "The Elder Scrolls Style". I love Skyrim but it was a shitty experience collecting the books to learn more about the history of the world when you had to collect 4 volumes, with each volume only containing a paragraph worth of lore. I tried hard but I didn't want to waste away my real life and my skyrim life hunting for books.
Anyway, I hope that they can get a great story teller to contribute to the storyline and direction of the game!