Wow. That is pretty expensive... but worse is that its such a low resolution application. One magnet means you wont be playing games with any accuracy at all. Basically, you have to pedal one full rotation before it knows your speed. Stop anywhere in between.. and its not going to register that. Probably does some calculations to auto-slow or stop if rotation isnt made in a certain timeframe. Ack.
I think an Optical wheel is a better choice. Its easy to set up, and optical input works with almost any game type. (mouse)
A lot of times theres some bikes on the Curb, or an exercise bike as well. If one were to make a stand and set the wheel on a roller.. you could then gear the output down, using another larger wheel attached to the smaller roller wheels.. and then hook the encoder wheel directly to that. Without gearing it down.. it would be way too high a resolution.
However, another option, similar to above... would be to attach one or two magnets to the roller wheel.. and have a magnetic reed switch to act as a digital keypress. Because the roller wheel is much smaller than the bike tire... it will spin the rollers like 16 times to the wheels One rotation. With two magnets, thats 32 hits per rotation.
Then again... If your using a chain drive that has functional gearing... ratios may play a factor in the output.
As for workout.. Exercise bikes have an adjustable braking pad I believe... which creates the resistance. This may be ok for slow games... but not so well for games that require quick & explosive reaction times... such as "Kick".
Id make the idea for a Kick controller some years ago.. using a unicycle like stand, bike pedals, a direct drive wheel.. and the Optical system I described. Didnt think about the gear-down setup back then though. I also had the idea to place some kind of balls on either side of the thing, to use as a real kick button. I think it would be quite fun playing like that.
Heck, if its dedicated to kick alone.. maybe make an actual track for it.. so that as you pedal, the whole thing moves back and forth along the track. The rolling chair device would be stable so that you wouldnt have to fixate on keeping the thing from tipping. However, the stand section could also be made with a pivot point.. with the seat section hooked to a heavy mass.. so that the seat could sway back and forth a bit... as you quickly changed directions. That pivot could also be hooked to an analog pot.. for some other usage... Such as pulling a wheelie - with the addition of some handlebars to grip on to...