In informal learning spaces employing digital content, such as museums, visitors often do not get adequate exposure to content, or they passively receive instruction offered by a museum docent to the whole group. This research aims to identify which elements of co-located group collaboration, virtual environments, and serious games can be leveraged for an enhanced museum learning and entertaining experience. We developed C-OLiVE, an interactive virtual environment supporting tripartite group collaboration, which we used to explore our hypothesis that synchronous, colocated, group collaboration will afford greater learning compared to conventional approaches. In an empirical study, we found some evidence supporting this hypothesis, taking into consideration other factors such as game experience and social presence. Students participating in the three-player condition demonstrated a better understanding of the collaborative tasks compared to their single-player counterparts. We discuss these results and outline future studies using the same virtual environment.