Immersion is exactly the opposite of what Arc Rise Fantasia does.
Elaborating on that, it doesn't take that much to be engrossed in a game if you're a fan of the gameplay and style that the game is in. I don't think something has to be amazingly good looking to be immersive, seeing as you can become totally immersed in Farmville or Bejeweled. If you enjoy playing the game and don't want to pull away, I would say that immersive (and/or addictive). It's so hard to break immersion, but these are my top ways to destroy immersion:
-Poor use of graphics: No, this isn't poking at bad graphics for taking away from immersion. It's obvious graphical glitches and poor choice of camera angles or blatent animation reuse that takes away from how much I can get engrossed into a game. I don't care if the graphics are bland or dated, I just care that they don't do something stupid and glitch out.
-Poor use of sound: Even moreso than graphics, sound is incredibly immersive. Sound effects and music build atmosphere even if they are merely bleeps and bloops. But some games employ horrifically bad voice actors ala Arc Rise Fantasia and Shadow Hearts: Chaos Wars, or they just assign the same voice actors to a whole race of people ala Oblivion. I don't want to hear characters who sound like they barely know english. I also don't want to hear the town hobo suddenly assuming a voice of a noble when he talks to some other wandering NPC. In fact, bad voice acting personally is one of the worst offenses a game can make. I'd rather have no voice acting at all if the alternative is to hear some horribly stilted english or hear the same voice over and over and over.
-QTEs: Situational. But nobody really wants a game with storytelling cinematics were all of a sudden a QTE pops up and because you left to go grab a soda or something, or set down your controller to stretch a little bit, you come back to find you got a non-standard game over.