This character come from the video game "Ys" that was a NEC PC Engine (sometimes called SuperGraphX) RPG game. I pixeled it from a very small 3x2 cm photo that was published in TILT, a French videogame magazine.

Now, for technical things, this picture was used in a demo on the Atari ST (this explains the weird gradient in the background). Also this demo was using fullscreen display mode, a trick that allows the computer to display up to 384x268 pixels instead of standard 320x200 by "opening the borders". It's an important detail because at this time none of available art packages supported this graphic mode, so the picture has been done on 4 separate overlapping 320x200 pictures that were then glued together by a small program... that's why there are some weird continuity problems in some areas.

Except the gradient the picture itself uses only 16 colors.