Abstract
Immersive virtual reality (VR) offers unprecedented opportunities for narrative storytelling, yet the interplay between user choice, perceived agency, emotional engagement, and memory retention remains complex. This study investigates how different levels of narrative choice impact user agency, emotional arousal, and narrative recall within a custom-built immersive VR narrative environment. We conducted a between-subjects experiment (N = 120) comparing three interaction paradigms: a non-interactive (passive) VR narrative, an explicit binary choice VR narrative, and an ambient spatial-choice VR narrative. Perceived agency was assessed via standardized self-report questionnaires, emotional engagement was measured through continuous physiological tracking (electrodermal activity and heart rate variability) alongside self-reported valence and arousal, and narrative recall was evaluated using a post-experience memory test. Our results demonstrate that dynamic spatial choice yielded significantly higher perceived agency and sustained physiological emotional arousal compared to passive viewing. However, explicit binary choices introduced cognitive load spikes that slightly impaired deep narrative recall compared to the passive condition, whereas spatial choice preserved narrative retention while maximizing agency. These findings suggest that subtle, embodied choice mechanics optimize the trade-off between player agency and story comprehension, providing valuable design guidelines for immersive narrative creators and interactive media developers.