I have absolutely no feeling for NPC's as I know they are just AI and not real. In fact I had fun with one of the Amusement Park Tycoon games making rides that made almost everyone that rode them throw up.
It's the same reason I can't comprehend people getting scared by watching a movie, because it's all fake.
Aye, the immersion factor in normal video games or movies doesnt work on everyone. Though, it also depends on the smaller aspects. What scares one person may just seem silly to another.
It also depends on the medium. Like, say, the FNAF series. I've played those plenty, they're fun, not really "scary", though the jumpscares can be startling. But yeah, nothing I'd actually get scared over.
And then... I played the VR one. Jumped in, did the intro, not too bad, jumped from there into one of the actual games (the first one). Didnt make it through the first night. I dont mean I lost. I mean I got on the express train to freaking Nopeville. Had to take the headset off and sit down for a bit to regain control.
And note, I've had the VR unit for quite awhile. As in, I completely have my "VR legs"... I've been doing this long enough that I dont get side effects, period, no matter what the game in question is doing. Can zoom all over the place, no problems. So I'm very used to VR. But it still went that way.
Which might sound silly, and honestly it sounded silly to me before I got the thing. I thought it was just a gimmick. Then I actually tried it. Turned out, it wasnt just a gimmick. I've done things like trying to set down the controllers on tables that dont actually exist, loopy stuff like that. And that bit, that hasnt worn off. VR messes with your head... that's the whole point. But there's no way to truly give a sense of that to anyone that's never used it, which is what I learned the first time I put it on.
But that's VR, absolute immersion is the whole point. Video games on a screen, well... I often love the creepy factor, as I love creepy stuff in general, but "scary"? Nah. Though I understand that other players get more immersed into those than I do, so for them the fear makes sense.
I've always found the whole thing fascinating.