A fictional character is a character who appears in a work of fiction, created specifically for it.
Fictional characters may be based off of, or incorporate elements from, real life people which include things like looks, personality, voice, or names. One such example: during the localization of Donkey Kong for North American audiences, Jumpman was renamed to Mario because the real estate developer who owned the Nintendo of America warehouse during that time period, was named Mario Segale.
Many video games have a "work of fiction" disclaimer, stating all characters, settings and elements are fictional and any resemblance to real-life or other works of fiction is coincidental.