Guinness World Records reckons Fuel is the largest videogame ever made, as it spans 5,560 square miles of terrain.
Update: As is pointed out in the comments section by JimSteele, "Daggerfall dwarfs it by a metric ****kton". Nice wording. Update out.
The book says: "The largest playable environment in a console game is 5,560 square miles (14,400 km), and is featured in FUEL (Codemasters, 2009). The area features rivers, deserts, forests and mountains and was demonstrated at the offices of Guinness World Records, London, UK, on 20 May 2009." They didn't hang about getting the press release out then.
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To drive from one end of the map to the other takes three hours and is described as being bigger than "Hong Kong, Singapore, St Lucia and the Isle of Man put together."