Embodiments of the invention provide an interactive toy or gaming device for actuating various interactive play effects within a compatible play environment. The gaming device comprises a portable housing having an internal cavity configured to receive one or more batteries or other power sources for powering the device. Optional lighting, laser or sound effects may be provided as well as one or more optionally-powered infrared (IR) or radio frequency (RF) wireless communications devices. The interactive toy or gaming device may also comprise an optional RFID (radio frequency identification device) transponder that is operable to provide relatively short-range non-battery-powered RF communications with one or more receivers or transceivers provided within a compatible play environment. The interactive toy or gaming device may further include an optional magnetic inductance energy source or motion-generated energy source for wirelessly powering the device by motion and/or using an externally applied electromagnetic field.