The game is not in real life. Its in the animal crossing universe. And the animatronics resemble the lost souls many years ago. Someone named “Isabelle” decides to make a dancing place in memory of her old friends. (Bob, Villager, and Bunnie.) The balloon boy creature thing in the gift shop is somewhat like a hallucination, but can actually kill you. That might not make sense, because hallucinations cannot kill you. Well they don’t exactly kill you, they make you faint. Then Villager and his friends axe you up and turn you into a tree on the show stage. Anyways back to the story. When Isabelle opens the dancing place, she gets complaints from customers saying there was some glitch in the animatronics. Isabelle knew this couldn’t be true. Then on the 5th night of FNAV, the soul of villager comes for you. Then the plushies in the gift shop come after you as well. Soon after that, the whole place gets burned down by Bob having gasoline in his flower pot. Then some loose wiring catches the gas on fire. Then the place burns down. Then Isabelle was so upset, she suicided. In the next game, it will reveal even more than this. ;)

By the way the next update coming probably today, will have jumpscares.