Past research on video game effects was often limited to explaining effects of game content and mode, leaving structural and contextual game elements scarcely investigated. The present research examined the yet unclear role of narration in video games, by adapting concepts and methodology from video game research based on self-determination theory as well as past research on the effects of literary fiction. Results provided evidence for the facilitation of immersion and an immersion-mediated enhancement of autonomy and relatedness need satisfaction through in-game storytelling, suggesting a mutual enhancement of immersion and need satisfaction. Moreover, in-game storytelling enhanced affective theory of mind. Perspectives on future research, connecting in-game storytelling and game content to complement current knowledge of video game effects on various real-world outcomes, are discussed.