While it could be considered "same room sex" since everyone can be seen by everyone else having sex with their own partners, it more falls under the umbrella term of "soft swinging", which can include limiting sex to one's own partner in front of others, even though that label usually means some sort of exchange of partners which can include any activity short of PIV or genital penetration. In that case, the term "soft swap" can also be used to distinguish the two. I think the activity you describe where the only goal is to watch the other couple (and be watched), but in no way interact, would be more akin to an exhibitionist/voyeur activity.
This is actually how we started out in the swinging lifestyle and we built up our comfort level incrementally with each new couple or two. With the very first couple we were with our activity was similar to what a lot of others have described here and was limited to having sex while they watched and vice versa with the addition of only the women directly interacting while the guys watched. The second time with them was pretty much the same, although the other woman did briefly play with my dick a little and stated how her husband wanted to see something that size fuck her, but my wife was not ready to let me leap that far ahead and likely one of the reasons we never got together a third time with them after that since they, being an experienced full swap couple wanted more and wouldn't be happy with limiting it to just exhibitionist/voyeur or even soft-swap for long. But we will still always remember them and be grateful for the patience they did show and that they were willing to "downgrade" for us in order to pop our swinger cherry and wish we had kept in touch after we eventually became full swap as I really did want to experience the other woman's pussy and still to this day imagine what I missed out on
.Since that time, we have had sex while others were in the room many times, although after that first couple there was almost always some sort of sexual interaction with the other couple (or couples); soft swap at first until we advanced to full or "hard" swap in later encounters. Eventually in our later years in the lifestyle, right up until we stopped, we actually preferred "separate room" sex with others as it allowed us to be better focused on the other partner and thus better enjoyment, rather than feeling we were more putting on a show for each other in same-room sex. In fact, with our one regular couple who we were borderline poly with, we were almost never in the same room together, with the exception of when they invited other couples to our get-togethers or the one time we used the "orgy room" at a club.
So, having started out limiting it to sex with each other while watching and being watched, it can be a fun and sexy experience and some couples can be satisfied leaving it at that, but also eventually, like us, they might definitely want or expect more.
Of course, all that I described took place withing the realm of purposefully seeking others out who were into it (in other words, other swingers). We have never had sex with others in the room where it wasn't planned and with people we already knew non-sexually or "vanilla" friends. We have never had regular friends who if they stayed over or if we would have found ourselves all sleeping in the same room for whatever reason, we'd be comfortable doing this with. That would be just too weird and unlikely.
