Background-Based System

The method of Character Customization by building the character from the ground up iteratively: for each consecutive stage of life - often from circumstances of birth - choose a pre-set bundle of abilities and traits expressed in statistics, either fixed or with minor variations ("2 ranks of any skills in group X"). The presence of background building may range from optional background "packages" that set the general tone to stage-by-stage selection of bundles that define everything.

It supposed to have (implementations and their specific uses may vary) several advantages:
 * Fast: It's important for Game Masters who need to churn out NPCs without making them faceless clones.
 * Intuitive: Character creation mechanics is encapsulated in small manageable pieces that make sense on their own.
 * Promotes roleplaying: At least, the characters are likely to be better grounded in the setting if they are for most part explicitly defined by it.
 * Not too prone to Min-Maxing: Extreme statistics are possible only as much as allowed by an extreme set of paths.

Some choices may have prerequisites, but each stage allows selection of multiple variants. Thanks to Combinatorial Explosion effect, limited choices may add up to considerable variety of the results.

This method can be used either standalone or as a layer over others, making a more free-form core Point Build System or Class and Level System more strict and less abstract in an attempt to combine benefits of generic systems that avoid arbitrary limitations and simulation model that can (and often needs to be) fine-tuned for a specific setting. It by definition limits versatility of free-form systems, but can be made exactly as flexible as the designer wants it to be. Prestige Class concept approaches the same general goals (or at least supposed to) as customized add-ons to the set of more generic base classes.

Tabletop Games

 * Burning Wheel "Lifepaths".
 * Fading Suns in later editions adopted "Lifepath System". See a web supplement and mention of the system being updated in new core books on FASA site.
 * The original Traveller had an extreme version of background generation: it simulated a Player Character's entire young and middle adulthood, complete with a career with dice rolls before you got to your first moment of play, resulting in the skills you needed to survive, the savings you accumulated (if any), and any equipment you'd acquired. One bad side-effect: It was possible for a character to die during character creation, before you ever got to play him.
 * Stars Without Number has option to generate characters with skill packages: generic Background Package of 4 + class-dependent Training Package of 8. Each raises a given set of skills, some give advantages of having cross-class skills without spending extra points or both sets overlapping, which raises skill cumulatively (which is great, since the point cost for raising 1 skill to "professional" level is the same as raising 3 to "trainee"), and of course thematically close packages tend to overlap more (e.g. with Soldier background, Mercenary allows to improve all 4, any other Warrior path up to 3). All choices have "Adventurer" packages that allow to pick only 3/4 as many skills, but some are completely arbitrary and the rest selectable from a wide range.
 * Warhammer 40000 RPGs. Starting traits and abilities are determined by the world of origin. Dark Heresy adds to that starting set from Career, possibly with Alternate Ranks, Background Package (unusual origin or early occupation), Elite Advance Packages (paths opening by story circumstances, such as surviving possession and being exorcised or being an active participant of some secret society) and Cell Directives (specific Ordo or task group training) for Acolytes of the Inquisition, and then there's mechanics of Elite Advances (unique opportunities taken with GM's case-by-case approval, like learning a relevant skill while working closely with someone who uses it). Only War runs with military unit perspective, so it gives advancements from regiment's basic type, commander's attitude (serving under a lead-by-example commander, rigorous military scholar with little initiative or glorified mailman is not the same), Training (and sometimes Equipment) Doctrines and the soldier's Speciality (which occasionally can be changed, but not often and not for everyone).

Video Games

 * System Shock 2 character generation gives 3 fixed stages of career path, 3 choices on each. Each pass gives a piece of background with corresponding stats boost and skill or psionic power.
 * Liberal Crime Squad makes the player answer a series of chronologically-arranged multiple-choice questions on character creation, starting from birth and ending in the character's present circumstances at the start of the game.