Choosing a Character Name:
In choosing a name for a fictional character, there are several different things to take into consideration.
Game-Imposed Limitations:
First, there are constraints imposed by the system. Videogames often will have rules that your name will have to conform to: minimum number of letters, maximum number of letters, whether or not numbers, spaces and punctuation can be used... even certain words or combinations of letters may be expressly forbidden. To the best of your ability, it would be best to determine these limitations early on in the naming process, so that you don't waste creativity and time thinking up names that can't be used in the game. Additionally, most games require that the name you select be unique (or at least unique on the server on which you're playing), something that can't really be addressed until you've come up with a name, entered it and found that the name has already been taken.
Types of Names: Real vs. Nicknames
Real Names:
There is a difference between real names and nicknames. You can use either one in a game, but if you are going for a "real name," then you might want to select a name that sounds like it is appropriate for the
Race of the character or the
Class of the character.
For example, if you are creating an Elven character, you may want to go for a more "elemental" or "nature-based" surname, such as Windsong, Narrowleaf or Riverdale with first names that are a bit exotic, such as Erik, Evilyn, Saviht. A Dwarf, on the other hand, might do better with a gruffer, grittier, more Germanic first name with an appropriate location-based or history-based name, such as Grindle Underwood, Barrig Dragonsbane or Dinter Tsavoritefall. Note here that "Underwood" is to indicate the family's home (caves under a large wood), "Dragonsbane" is to indicate that this Dwarf has slayed a dragon, been party to a dragon slaying or, at the very least, was at least mildly irritating to a dragon at some point, and "Tsavoritefall" is another location-based name, indicating that the Dwarf is involved in the mining of Tsavorite, perhaps in a mine that has a great waterfall.
Nicknames:
Even if you're going for a less formal name for your character, the name should reflect something about the character. In fact, using a nickname allows you to be more descriptive than if you create a "real name." For example, while "Pevil Ironhand" may give you a sense that the character is either a blacksmith or a strong fighter (he's both, actually), his nickname, "Meat-head," describes his personality quite a bit better. A character with red hair may be called "Red" or "Carrot top." A thief who is considerably less agile than would be expected may be called "Thumbs" (because he's "all thumbs"). It can help to think of what other characters may call the character in jest. This can be difficult, since you have to choose the name at the beginning of the game, but when it works, it can enhance the gaming experience.
Ironic Names:
Sometimes, a great name can be a nickname that is, quite frankly, the opposite of what the character actually is. Taking Pevil Ironhand as an example again, "Meat-head" gave a fairly good idea of his mentality, but he could just as easily been called, "Rocket Scientist" or "The Wizard," in an insulting nod to his intelligence score (don't ask... Really). A prime example would be a huge monk named, "Little John,"... or a 6'5" mechanic who answers to "Tiny"... you get the picture.
Linguistics:
One thing worth considering when creating a name is what sort of speech patterns, languages or otherwise, the character can speak, based on his Race and Region. Does he/she/it have a particular dialect that they speak and that you will employ when chatting as this character? If so, is it a limitation of the entire class? A character is not likely to be named "Rory" if the Race can't pronounce the letter "R," for example.
An excellent example of this would be a lizardman character. If you imagine that the reptilian race would have a lot of hisses and teeth gnashing, then it would be more likely that you would use a name like "Shethsikk," rather than "Roger" or "Harold."