Narration happens through the point of view (POV) of a specific character. This POV allows for intimacy between the reader or player and the environment of the story. In games or gameful experiences, first-person allows for immersion: the player can feel as though they are the ones acting and making decisions in the story/game.
Narration happens from the point of view (POV) of a narrator who is looking on. In games or gameful experiences, the third person allows the player to care about and build a relationship with characters, but maintain a layer of separation or objectivity.