A friend of ours bought a small laser pointer for Cosmo and Ling a while back. While the both of them enjoy playing with it, Ling goes "nuts" in a controlled manner while Cosmo just lets loose even if it means looking absolutely silly.
If you want to use the laser pointer to play with your cats, you must be very careful NOT to point the laser into their eyes as it can damage their eyes. Also, use the laser pointer sparingly (once a week at the most) as it can be very frustrating for the cats since they cannot catch the red dot and even if they do catch it, there is no touch sensation.
For Cosmo and Ling, we let them play with a variety of stuff, including feathery toys, crunched up papers and ping pong balls as part of their daily exercise. They also entertain themselves by rubbing themselves on Whisky and having her chase after them!