Aren't Pokemon made up of a unique form of Energy that they exude, assimilate, convert into moves and evolutions, and can be condensed into? I don't think we'd be able to make them just with genomic changing.
You just haven't Physics'd right yet. Did you know that two solid objects CAN occupy the same space, contrary to popular belief? It's based on geometric spacial dimensionality. Multiple two-dimensional objects can exist in the same three-dimensional space and therefore multiple three-dimensional objects can exist in the same four-dimensional space (which is actually a thing in Geometry)!
This means that you can have a house at the same dimensions as your house in the same place as your house by moving from the layer with your house to the layer with the other house without ever leaving your h
Science isn't boring.
IT'S SCIENCE!!!
Also note how the entire Pokemon world relies on Science, even if it's Poke Science.
Think about it this way: You can use Quantum Physics to play a game with Simulated Physics that relies on Poke Physics.
Physicsception!
I know. What I just described was how Virtual Reality worked. Unless you're talking about something like the Oculus Rift, which isn't actually VR.
True VR is full-immersion to the point that you become unaware of our reality and are completely dependent on the new (the game's) reality. This requires complete sensory immersion and a lack of consciousness in regards to the outside world. This will be obtained through the use of quantum technology during forced REM sleep.
Quantum Mechanics will actually allow us to do it. All we'd have to do is go into a state of REM sleep and wake up in a simulation where the parts of our brains that handle our senses react to the simulation in a similar manner. Quantum technology can create this simulation and cause our brains to react in that way.