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Ranger.Danger put it well. It can help with a general idea of historical settings and geography, but don't expect to learn real hard history.
Most Western history, especially English-language history, of the middle ages is factually accurate to the extent the facts are known, but it can still be misleading. This is because the medieval era in Europe was dominated by i) the Catholic Church and ii) Not England (and by extension not North America, obviously). This is not to say that the English or North-American historians who have dominated the field of study in the modern era deliberately misrepresent medieval history; however, there is a strong cultural bias in favor of post-Reformation sociopolitical structures. These are after all the sociopolitical structures with which all these historians are comfortable and familiar.
Now, quite obviously most of us are much happier living in a time where modern medicine and scientific knowledge is available, most geographic areas have reasonably stable governments, and political leaders usually cannot start a war or throw you in jail for no apparent reason. So to some extent we would probably mostly agree that post-Reformation, modern life is categorically better than the middle ages. However, there are some things that are different due to the progression of human technology and knowledge, such as figuring out how to make a non-hereditary bureaucratic state work, and there are some things that are differences in kind. It is in this respect, the portrayal of historic differences in kind, that modern historical representations of the medieval era are perhaps misleading.
The simple fact is that things were very different in the middle ages, and these many differences cannot all be explained away by modern scientific progress. HIstorians with modern social biases - which is to say pretty much everyone - sometimes, or perhaps even usually, interpret these differences in a manner which portrays the old, medieval ways as "bad" or "not as good" as our more comfortable, understandable modern habits. But this is only a subjective, not an objective, comparison. Because we do not live in a medieval society with a medieval outlook on life, it's quite difficult for us to understand how their historical decisions all fit together. Much of the problem is due to the fact that medieval European history is studied, usually, as if it were the history of Europe. We all know about Europe - we live there or we've been there or we've seen it on TV. But the problem is that 12th century Europe is not "Europe", it is pretty much an entirely foreign country. Scholars of comparative sociology or antrhopology have techniques to deal with this differentiation; the good ones generally do not make the mistake of approaching the study of Chinese culture as if it were exactly like English culture but in Mandarin. It's understood that things are different - that certain things that would seem senseless in London make sense in Shanghai in the proper cultural context. But we often approach medieval European history as if historical decisions and events in the 12th century can only be explained as per a modern viewpoint.
Now if you read non-English (or translations) history of that time period, especially from outside Europe or from the cultural fringes of Europe - Tsarist Russia, antirevolutionary/monarchist France, etc - you get a somewhat different viewpoint. It is not necessarily any more accurate than reading Toynbee, but it is strikingly different in approach to and interpretation of medieval European history. However really nobody ever reads this stuff nowadays, and it's certainly not a body of knowledge that is easily accessible and used by game developers.
If we're comparing to other sources of learning, it's a starting point only. If you're comparing to other video games, it's like a university course, considering the retardation that usually passes for history in video games
England after the Norman conquest had hundreds of barons for instance.