A few points:
- 1 million is not "unlimited", even less so "a few thousand". Depending on what you need to license or pay for (artists?) this may in fact be "small change". Say you have a team of only 2 people (you and an artist) and it takes you 3 months to produce a game. Mr. Artists needs to eat and pay bills, and so do you. There you have already "a few thousand" gone for nothing at all (probably something like 5-10k). Now add some 50k license fee because you use some engine or library, or some 5k-10k for software.
- Getting a friend/family/fool to yank out non-trivial amount of money (that is, more than a hundred or so dollars) for your first-time-no-experience-project bears a considerable risk of losing a friend/family/fool. There's no easier way of getting someone to never talk to you again (except through a lawyer) than burning their money.
- The chance of having a bombastic success on the first project, without experience and/or a lot of skill is rather small (even with experience and skill it's not that great). You are very lucky if you get your investments back. Which means: keep your investments low, and don't take up loans.
- Millionaires are not millionaires because they're altruists or because they're stupid.
- A loan, be it from a friend or not, is still a loan, and as such is not free. It comes with obligations. If your friend gives you, say, 10k dollars, she will expect you to pay a considerable amount of money from your revenues later. Seeing how she is doing 100% of the funding and you have no reputation as game maker, that'll likely be something close to 100%.