How to create large landscapes like this?

This type of scene is absolutely possible within UE4, especially after the 4.7 update. The process would go something like this.

  • Get Hight map out of something like world machine and import to Landscape
  • Craft up custom landscape material to give a base ground
  • Load in all sorts of Speed Tree vegetation into the landscape vegetation painter tool
  • Paint the Landscape with your trees, shrubs, etc.
  • Add in some Meshes for houses, etc.
  • Add in the FPS content
  • Press Play and your off to the races!

That would be a good staring point to make a game. You would then need to add in all of your game play logic with either C++ or Blueprint.