Wow, so welcome to 30 yrs ago on ONE series that nobody currently knows about and would end up a totally different experience. Come on, if anything that concept could be updated for a modern game and work really well in the style I'm suggesting.
While the "reward" concept of a million bucks is a draw, the incentive would be reduced after someone redeems the first million. After the second, well, at least you can play the next one, right? Doesn't do enough for me.
Further, paying for more lives would be obnoxious. You get one shot, then you'll need to buy the rest. Coupled with making people buy the second game? Nope.
Where you gonna get $2 million when the game is beaten and 100%'d within a week and your sales haven't caught up?
Not to mention development costs, advertising, server upkeep, etc. Hardly anyone would play after the prizes are redeemed. You could make a prize tier, but that's even more money you'd have to pay out that you probably don't have.