An interactive contact and simulation game apparatus in which a player and a three dimensional computer generated image interact in simulated physical contact. Alternately two players may interact through the apparatus of the invention. The game apparatus includes a computerized control means generating a simulated image or images of the players, and displaying the images on a large display means. A plurality of position sensing and impact generating means are secured to various locations on each of the player's bodies. The position sensing means relay information to the control means indicating the exact position of the player. This is accomplished by the display means generating a moving light signal, invisible to the player, but detected by the position sensing means and relayed to the control means. The control means then responds in real time to the player's position and movements by moving the image in a combat strategy. When simulated contact between the image and the player is determined by the control means, the impact generating means positioned at the point of contact is activated to apply pressure to the player, thus simulating contact. With two players, each players sees his opponent as a simulated image on his display device.