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Yes, but that game would actually be "Playstation all stars battle Royale" :S. It should have been more of a MvsC3 game than Smash bros.

Now talking about an action game, they have to go big or go home; because having a game with your major characters involved, needs to be BIG budget to go all the way to guarantee a great game (if not a masterpiece). Some sort of open world action RPG would be fantastic. Having Kratos, Drake, Aloy, Ratchet, Sly cooper, Jak, a sackboy and then some invited 3rd party characters in a game, with a story that makes sense (GOW universe alone can justify the melding of realms); if well done can be truly a masterpiece.