An entertainment device comprising a housing or base unit that supports display surface is disclosed. A display generating device displays visual images on the display surface. The display generating device may be a projection-type display device or a display panel device. A touch/proximity sensing device detects positions of a user appendage on the display surface in the course of a game or activity. In addition, users may interact with the entertainment device with an input controller device that comprises buttons, directional pad devices, etc. A control unit, connected to the touch/proximity sensing device and to the display generating device, is responsive to signals from the at least one input controller and/or position detections from the touch/proximity sensing device to, among other operations, alter the visual image displayed on the display surface.