In most video games today that focus on a single story, scripting languages are used for controlling the artificial intelligence of the virtual actors. While scripting is a great tool for reliably performing a story, it has many disadvantages; mainly, it is limited by only being able to respond to those situations that were explicitly declared, causing unreliable responses to unknown situations, and the believability of the virtual actor is hindered by possible conflicts between scripted actions and appropriate responses as perceived by the viewer. This paper presents a novel method of storytelling by manipulating the environment, whether physically or the agent's perception of it, around the goals and behaviors of the virtual actor in order to advance the story rather than controlling the virtual actor explicitly. The virtual actor in this method is completely autonomous and the environment is manipulated by a story manager so that the virtual actor chooses to satisfy its goals in accordance with the direction of the story. Comparisons are made between scripting, traditional autonomy, Lionhead Studio's Black & White, Mateas and Stern's Façade, and autonomy with environmental manipulation in terms of design, performance, believability, and reusability. It was concluded that molding an environment around a virtual actor with the help of a story manager gives the actor the ability to reliably perform both event-based stories while preserving the believability and reusability of the actor and environment. While autonomous actors have traditionally been used solely for emergent storytelling, this new storytelling method enables them to be used reliably and efficiently to tell event-based stories as well while reaping the benefits of their autonomous nature. In addition, the separation of the virtual actors from the environment and story manager in terms of design promotes a cleaner, reusable architecture that also allows for independent development and improvement. By modeling artificial intelligence design after Herbert Simon's “artifact,” emphasizing the encapsulation of the inner mechanisms of virtual actors, the next era of digital storytelling can be driven by the design and development of reusable storytelling components and the interaction between the virtual actor and its environment.