One aspect of the invention is a method for presenting a virtual reality setting for an interaction. An example of the method includes presenting a streaming video of a real-world background scene, and presenting a series of individual video clips that are joined into the appearance of a continuous streaming image of a real-world character. The method also includes inputting an operator's choice of action or inaction, and updating a current state based on the operator's action or inaction. The method further includes using the current state by a decision logic to determine a response in the setting by the character, and using the current state by the decision logic to determine a selection of how to control video of the character and how to control video of the background. The method may also include simultaneously presenting a three-dimensional representation and a two-dimensional representation of a playing area.