1. A system for use in interactive entertainment, the system comprising: a plurality of toy characters, each of the plurality of toy characters comprising an outer covering; a plurality of wireless transponders, each of the plurality of wireless transponders being enclosed within a respective one of the plurality of toy characters and comprising a memory for storing character information associated with the respective toy character, each of the plurality of wireless transponders being further configured to communicate the character information wirelessly through the outer covering of the respective toy character without requiring exposure of the wireless transponder; at least one transceiver configured to receive the character information from the wireless transponder of each of the plurality of toy characters; and a computing device in communication with the at least one transceiver and configured to track a progress of each of a plurality of users in an interactive game based at least on the character information received by the at least one transceiver from the wireless transponders. of the plurality of toy characters, each of the users being associated with at least one of the plurality of toy characters.