I know this should be in the book section but I was hoping to get more visibility here in the lounge. I'll move it if it greatly offends
I just finished this book, Better Game Characters by Design: A Psychological Approach.
I cannot reccomend this book enough - it's one thing to be able to draw a nice-looking character, it's another to have the wise design choices behind it to appeal to your market and work within the limitations of your console. The book won't teach you how to draw a space marine step-by-step, but explains the importance of designing for foreign markets, use of body language and acting, touches on gender differences in design, interviews various designers in the industry and comes with a DVD containing video clips from fairly recent games to further explain design principles. These ideas are sometimes overlooked by folks starting out or even by design studios (and I speak from experience on both of those counts).
So. Damn. Rad. You can read through the table of contents on the amazon page to see what's in it in more detail. One thing that's great is that the book is designed for a class, so there are exercises at the end of each chapter and questions to help you explore the ideas more.
So if you have some extra cash from your tax return or you've got the budget to build your studio's library, pick it up.
...I swear I wasn't paid by the author to say this. I just have really good book stoke, and that's rare.