Whoa, what is happening here?!

This excerpt was insane. Is this The Sims? What is going on? My curiosity is so peaked right now, I need everything explained to me this instance! Is this horror? Thriller? Sci-fi? Is it a video game, a simulation, an experiment like Divergent, entertainment like The Truman Show, are there aliens, just regular humans, a god??? WHO was the person speaking in first-person??? I've never had so many questions and been so intrigued by a small excerpt like this before! Definitely have to add this to my TBR!!