Yes, Red Dead Redemption is based on a true story in the sense that it is deeply rooted in the history of the American West. The game's world is filled with elements that were real in the past. The struggle between the settlers and the native tribes, the growth of towns, and the prevalence of gunslingers all have their basis in historical accounts. It recreates the atmosphere of the era, with its dusty trails, saloons, and the constant threat of violence that was a part of the Wild West.
Well, to a certain extent it is. The game is set in a fictionalized version of the American Old West. While there isn't a single overarching 'true story' that it is directly based on, it takes a lot of historical facts and figures from that period. For example, the general look of the towns, the types of people you'd find there - cowboys, bandits, lawmen - are all based on historical archetypes. It also has references to real - world events like land disputes and the expansion of railroads which were major factors in shaping the West.
Yes, it is. Red Dead Redemption draws inspiration from real - life historical events and the Wild West era. It incorporates elements like the lawlessness, the presence of outlaws, and the rough frontier life that were characteristic of that time in American history.