Cutscenes, also referred to as in-game Cinematics, is one of the commonly used techniques that portray narratives in games. Some games render these on the fly, using in game rendering, while most others prefer pre-animated ones for better quality. In both cases, these are generally scripted scenes and are often triggered by in game events. Cutscenes can broadly be differentiated into two categories:
Assassin's Creed Series
The Assassin's Creed Series utilizes a variety of cutscenes. Leap of Faith is an example of a cutscene rendered by the game, on the fly, where the player also loses control of his character. Alternatively, Escorting missions are examples of cutscenes where the player retains limited movement controls while escorting and conversing with NPC characters. The game also has narrative driven moments where the player loses all control and watches the plot development instead.
The Elder Scrolls 5 - Skyrim
Since cutscenes can serve a variety of purposes, it is important to be aware of which category would best fit your game's needs. Additionally, although Animated cutscenes offer higher quality, they would also require more content production, whereas, using cutscenes on the fly, is more prone to bugs. Thus, it is crucial to understand both, the game's technical limitations, as well as narrative requirements to use them effectively.
This pattern is industry standard.