Is it possible to make a " live action " video game?

It would be possible, but only using actors. We are still a little behind on technology to do it properly. Ideally you want holographic NPCs instead of actors, and you are going to want it to work with motion detection.

It would be possible, but it would not be that good at the moment, we need to wait a little longer so we can project things and do other things.

Police officers sometimes participate in “Shoot/Don’t shoot” exercises, where scenarios are projected on screens in a firing range and the officer reacts accordingly using live weapons.
The projection is sound actuated and stops the instant you fire. You can tell where your round went or if the other person squeezed off the shot first by looking at the smoke from the barrel.
It was not a game.

There already have been a few acted video games using different techniques (depending on when the game was released), none of these were similar to 3D games.

Some arcade game in the last 70s used a film projector and some kind of light gun to react the player aiming and shooting, since this didn’t allow for altering the movie in any way (like an overlay), the scene was cut and an alternate ending was shown (e.g. a gunmen falling to the ground). The presentation was pretty bad compared to games nowadays, but probably pretty good at the time.

Some computer games used scenes filmed by live actors that featured alternate storylines depending on decisions of the player or featured a fixed story that progressed while the player finished tasks or riddles in the game.

The best known game with alternating scenes is probably Wing Commander 3 and above, a game that features fixed scenes is, for example, the 7th Guest (this game didn’t have any correlation between the movie scenes and the riddles, so that was kind of disappointing). I also remember a game called Critical Path that featured acted scenes that were actually altered by reacting at the right moment and cut to the alternative scene if the player didn’t (similar to Dragon’s Lair which did that with animated movies).

None of these come even close to a 3d game with live scenes, though.

Sure, they were done all the time in the early days of optical media.

They sucked.

I’m with @Ivan, none of the games were any good, bad acting, bad story or none at all, bad special effects…

Yes… if they can make live action real war from “The Situation Room” in The White House then games should be easy.

Wasn’t there a mortal kombat one where they tracked the people and imported them into the game?

@XOIIO The first 3 or so MK games did that.