An interactive in-room show and game system configured to provide engaging and immersive multimedia shows or presentations in a room. The in-room show and game system generally includes a controller for selectively operating a display device, a video projector, an audio system (e.g., one or more speakers), and other show components (e.g., one or more lights, a fan, a mechanical device, and so on). Media content is predefined or generated in real time for the room, and the controller operates (such as in response to a triggering switch or remote control device that may take the form of a show prop activated by someone in the room) to serve the media content interactively, based on user input sensed in the room by one or more sensors of a sensor assembly, to tell a story and/or magically transform the space into a multidimensional and immersive entertainment or gameplay space.