A video game/comunications system is disclosed which permits guest room guests to actively participate in video game play or to use other data processing/communication services. A multi-tasking master host computer stores video games and other application programs on its hard disk, downloads programs to an array of SNES game playing engines in response to guest selections. Each guest room guest room includes a terminal device which is coupled to the guest's color television and to a game controller. By pressing a game controller menu key, the guest room guest initiates the downloading of applications software by the host computer to the array of SNES engines located within the guest room. A downloaded applications program generate a display menu which appears on the guest's television. The display menu permits each guest room guest to select between various operating modes (identified, for example, by displayed icons), including movies, games, shopping, survey forms, language selection, communication/data processing services, etc. If a user opts for video game play, then the available game titles and/or descriptions thereof are displayed. The host computer assigns a time slot to both a guest room terminal and a SNES game playing engine for passing game play indicating key strokes from the room's game controller to the SNES engine. Audio and video outputs from each of the SNES engines is connected to a channel modulator that places the composite signal on an assigned frequency in the RF distribution system. The assignment is communicated to the room terminal during an initial interactive session, whereby the teal tunes the TV to the proper channel for its assigned SNES engine.