I didn't mean that ONLY character devlopment matters to story, but if you don't have much of it, then you won't care for the characters, you won't care what is going on.

That is exactly the problem with XII. No one cares about this kingdom, no one can empathise with the characters or their struggles. It is a cardboard story with plasticine characters.

Story needs more than just its base., It needs you to care about it, and you can't care about it if your main characters say around 10 words every hour, and the main villain has less development than gogo then suddenly turns into a RarrarAAWWRRrr monster!

If you are arguing that stories can be just as good without the character's being developed, then I have to disagree completely. A good story depends heavily on it, that is a fact.