This study demonstrates how playing a well-designed multitasking motion video game in a virtual reality (VR) environment can positively impact the cognitive and physical health of older players. We developed a video game that combines cognitive and physical training in a VR environment. The impact of playing the game was measured through a four-week longitudinal experiment. Twenty healthy older adults were randomly assigned to either an intervention group (i.e., game training) or a control group (i.e., no contact). Participants played three 45-min sessions per week completing cognitive tests for attention, working memory, reasoning and a test for physical balance before and after the intervention. Results showed that compared to the control group, the game group showed significant improvements in working memory and a potential for enhancing reasoning and balance ability. Furthermore, while the older adults enjoyed playing the video game, ability enhancements were associated with their intrinsic motivation to play. Overall, cognitive training with multitasking VR motion video games has positive impacts on the cognitive and physical health of older adults.