While Autodesk's 3ds Max isn't technically a video game, it's what people can use to make landscapes and characters for video games.
Take a look at these short videos, for example:
Aren't those amazing? It's like if you can dream it you can build it in the virtual world! If you're interested in making video games, or just putting together some cool animations, videos or creating some cool virtual landscapes, take a look at 3Ds Max. It's not cheap, but it might just be your new favorite hobby or, if you has skillz, your new career!
Autodesk 3ds Max 2011: 3D Animation/Designing