I'd split into 2 teams, each with 400,000 people. 100,000 people would be devoted to building a console with 1tb of HDD and roughly double to 2.5x the power of the PS3 (with massive amounts of RAM), for a low enough cost to work on the market, while the other 100,000 are to go off and start a couple other companies to develop games for the new console that aren't just my own.
Ideally, it would cost roughly the same as the PS3 when it first launched, which should be good considering its immense power. It would likely have to be sold for cost or at a small loss like Sony does now, using it as a loss leader for the games and accessories.
Yeah, let's just call it the PS4 and be done with it.
The first team:
Rolling with the Zombie idea, it would involve a couple thousand people painstakingly mapping the entirety of, say, Sydney or a medium-sized US town, complete with 25km of surrounding land. The inside of most big buildings will be mapped, the rest made complete by a massive team of other people. The graphics will be as realistic as possible, and all the guns and various products (including vehicles and explosives and such) you can find around the city IRL you can get in the game, and most of them you can use. First-person, obviously, it will start with you waking up to screams and crashes, and the spread of the outbreak is determined at random by the game based around what time it decides to make your start. On a Saturday night? Massive, fast outbreak. Wednesday at 2:30pm? Slow.
You will be able to do effectively anything you could do in the real world, including picking wherever you want to make your base of operations. Helping survivors or letting them die determines how the game progresses in a realistic way (helping them, some will join you and/or hang out at the base and can join you if you need to a supply run or help other survivors). Eventually you will have to start defending against gangs, providing you've lived long enough. You and other survivors can even be called a gang, if you wish to be bad people and kill all the other survivors and take their stuff for yourself.
Graphics and gameplay will be as good as they can be, photorealistic with up to 1.5k people and animals on the screen at once, at a minimum steady 30FPS. Your skills will start off at level 1 with level 50 being the highest they can go, determined at the start on the game depending on how you develop your character (Will you be a single mother and be skilled only in cooking, hopeless with guns? 25yo who's been in the Army for 5 years with a massive skill set, as a cop out? Whatever you want.)
The ultimate goal is to simply survive until the zombies decompose enough to stop being a threat, after a few years.
The game will only end once you, as the player, are killed or die after 60 years of gameplay (roughly 2 years real world time)
You will have 1 respawn, with the ability to gain another with every child you have.
The ultimate zombie game to end all zombie games, it will come with 2 versions - Single Player, or MMO.
MMO is deceiving, as only 15 IRL can play in one world at a time. Players can kill each other at any time, with the downside being that the others are alerted to this when it happens and your location is marked on any maps/GPS the other players have for the next hour.
Communication in game is done with either a headset (limiting hearing range is slightly higher than realistic), or phones assuming the network is still up (can be brought down by player actions or NPC very rarely).
As for the second game, pretty much like OP described - i want a first person, real big world based Pokemon game and have for a while now.
Base it in Sinnoh and Almia, the difference being that it will be focused to the mature audience - including blood and gore, and containing the... Not often talked about issue (outside of the internet) of pokemon/human relations. (You might not want to hear it, but pokemon do in fact have genders, a few of them are very human-looking and most are very intelligent.)
The game world should be big enough that it should take close to a real world day to go from one extreme to the other, with realistic fast travel systems (trains, taxis).
The story will have to be thought over for me, but i'm wanting it to be based around a group of 'radicals' who are trying to promote pokemon as equal in all human aspects of life, with the players choices determining the outcome of many things, including if he/she wants to join either the 'radical' group or the league, or even be independent of both groups and do their own thing.
Choices matter in this story, and it can end in many different ways - some of them good, bad or neutral.
Special care should be spent that the world behaves and looks much like a real one would, in most aspects of life. Graphics would be colourful and beautiful, reflecting the pokemon universe, but include gritty cities when needed.
Of course, some common crap from the pokemon universe will have to be scrapped. No children going out on adventures, commanding beasts literally able to control space and time, no completely free medical care that happens instantly (book a room kid, the broken bones don't snap back together in seconds) and overall more people doing boring normal jobs.
Only 350,000 people should work on this project, though. The other 50,000 can start doing a Kanto expansion after the basics for the game have been made, ready to be released as DLC later.
Both games get to be on the same console, which will be open to other developers to make games on.
Because both would have massive, ultra-realistic worlds, you can't just put them on like 5 blu-rays - instead they will come with a hard drive that dumps data onto the internal drive through whatever connection is convenient (SATA3?), with a single dual layer Blu-ray being used to contain most of the code or whatever and etc.
And that's my overly long proposal for 2x video games, both ultra-realistic insane things that would never make the money back even if they cost $1k each copy (which they wouldn't).
It's very likely the Pokemon game would never go through, due to Nintendo not wanting their only reason the handhelds sell being associated with death, gore and bestiality.