Incredibly so. I'm making my first run though it now and it's absolutely incredible. At least as immersive as the Witcher 3 and Skyrim for me.
For me it's much much much better than these games.
Like no other game Cyberpunk 2077 gives me such a strong feeling of being there. Above all because it's almost all the time interactive in first person view. It's pure gameplay and moments sometimes seem so intimate that it almost feels like a VR game.
When this level of immersion is paired with the great storytelling you will get the strongest first-person storytelling that exists.
A good example of this is the Heist mission at the beginning. The high level of immersion makes the player feel like he's in the middle of it. The exciting narrative makes it more intense when following the drama in between.
There are more missions like this and the Phantom Liberty Add-On continues at the same level. In the end with Solomon Reed it's comparable to strong Blade Runner scenes except that the player experiences something like this interactively and up close.
The writing and characters are at the highest level in the game industry. I only need to mention Johnny Silverhand and the verbal battles with the player character and how profoundly their relationship develops later on. The eroticism in this game is also better than in any other game I know of.
Then there are the decisions which give the player the feeling that the plot unfolds naturally depending on how he behaves. It doesn't matter whether there are major consequences or not the only important thing is that he believes it the first time he plays through.
Night City with it's believable and brilliant city architecture and it's rich story immediately captivates the player. It's a huge star of the game and feels like a real city.
Everything in the game fits perfectly together including the gameplay mechanics. Like the technology implants from the Ripper Docs everything has it's purpose. The player has freedom in combat gameplay whether shooting or hacking or becoming a stealth warrior. It fits and is fun however he want's to play.
If you play it now you'll get one of the best gaming experiences of all time. The great strengths of the videogame medium are exemplified here. If I had to name the best game I've ever played it would be Cyberpunk 2077.