Objective: The purpose of this study is to verify the effectiveness of applying virtual reality-based serious games for the functional improvement of patients with psychological disorders such as Alzheimer’s, dementia, anxiety, depression and chronic pain, which are rapidly increasing among the elderly worldwide. Methods: There are several studies which show that serious games improve the cognitive function of the elderly. However, most of these games are limited to one disease based on a single scenario, and none of the studies used an integrated approach. In this paper, we propose 12 important game features by analyzing games related to psychological disorders and chronic pain. Furthermore, we suggest an integrated game system that combines these features. We tested the effectiveness of the proposed game system on 20 elderly subjects. Results: In this paper, we tested the improvement of physical function and memory in the elderly with psychological diseases. The first experiment showed a gradual improvement in physical function after a virtual reality game based on weekly exercise. The second experiment showed that the path-finding time gradually shortened as time passed in the path-finding virtual reality game. Conclusions: In conclusion, there is a need for an integrated approach toward psychological disorders and diseases of the elderly. In this study, we proposed an integrated game system with 12 features after analyzing and extracting these from a functional game system for psychological disorders. Based on these features, we developed a virtual reality serious game and tested its effectiveness for the elderly, showing good results for physical activity and memory recovery.