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").

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.
 * Promote roleplaying: At least, characters are better grounded in the setting if they for most part are 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 both generic system with minimum of arbitrary limitations and simulation model 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) via add-ons to 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 Player Character's entire young 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.

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.