I know that my characters tend to change a bit after I've written some dialogue for them and they have had a chance to tell me who they really are.
That's pretty much how novels are done. You get a basic idea down, make notes of things you want to add, then you begin seeing the book/characters come to life, and naturally, your imagination begins to take over suggesting twists and turns. Including adding even more characters, more for supporting roles, then you begin to think they need storylines.
At some point you just have to make notes of characters or plots and do up another novel, otherwise you end up with a 40,000 page book, but really that book is never finished in the writers mind.
Altho a book is obviously easier to edit, then a game. I started to writing a book, and it snowballed, but never ends, and I end up burning myself out. So I stay away form writing, with the dreams I have I could give Stephen King a run for his money.