Is the development of virtual characters in video games—by increasing their physical and psychological strength and skills through in-game exercises—considered an imitation of God's creation?

Electronic games that include Sharia violations such as music, uncovering of 'awrah (intimate parts), veneration of the cross, violence, and neglecting duties are forbidden, as is their sale and purchase. Anything that grants power in the game, whether it be a cross or an amulet, is considered forbidden. However, if power is gained through exercises within the game that do not involve forbidden elements, then playing it is permissible.

As for mudahaah (emulation/likening) in language, it means resemblance. In religious texts, there are hadith that warn against those who "emulate Allah's creation." This includes those who sculpt an idol for worship, or claim that their image is better than Allah's creation. This does not apply to games that feature animated characters, as they are not intended for forbidden mudahaah.