You're on the right path for both render and game-mesh (or at least one of the right paths; there's always more than one way to do something). Take note that I have a very limited amount of experience compared to what many others on this site may have, but I can at least pitch in my two cents, and maybe point you in the…
@CaptainBlasto Thanks! That is an amazing list. Ill certainly be referring back to it. Im going to try to explain our thoughts, so far, on the different aspects you outlined. We are planning on having one character model for the main character, but with the option to change hair style/facial hair but limiting it to…