Urban co-creation is an approach to urban design that actively involves stakeholders and end-users in the design process. As designers increasingly use digital tools to manage design information, stakeholders and residents may find it difficult to participate, resulting in a lack of engagement. The emergence of metaverse technologies offers a crucial opportunity to employ user-friendly and collaborative tools, enabling more effective participation. In the study presented in this article, a custom-designed digital game with virtual reality environment was used to facilitate a series of co-creation workshops. The study focused on changes in participants’ experience by comparing baseline and endline survey results against the design outputs. It employed a holistic framework considering four dimensions: game design, participatory experience, learning outcomes and co-creation results. The findings indicate that the digitally gamified approach helped enhance participation and knowledge sharing, and even though game design ratings varied, the use of video games motivated engagement, particularly in an intergenerational context. The co-creation workshop design documented in this article offers new methods to enhance community engagement in urban design. Especially during digital transformation, it opens renewed discussions on balancing traditional output-driven approaches with more participant-centric methods and design objectives.