Agile seems like it would be better for the customers/players. They have access to part of the game from the get go, and are more involved in the process. It also seems better because things can be worked on more easily if errors occur later in development, since parts of the project aren't finished before going to another. It would also be better because you can work on some more difficult stages of the project earlier than waterfall.
Waterfall seems like the pros would be: getting things done in an orderly fashion, focusing on one stage at a time so as to do the work better and more efficiently, and making sure things are working properly at their stage of development before moving on(meaning it would be easier to tell when something gets messed up, because you know it was working at the end of the previous stage).
As far as working on our project, I'm the producer. I think that agile development would help us by working on the writing, the engineering, and the art all at once. Especially since we don't have much time, only one semester. Getting things done simultaneously would help us be more efficient.