I've read lots of mangas and seen many animes, and it seems a Japanese person can have virtually any kind of name (the meaning of a name can be something completely ridiculous). Is it true in real life, or is this only for the purpose of amusement, and it doesn't actually occur in reality?
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A given name can be in theory virtually anything --- a decade ago or so, there was a family who gave his son the name 悪魔 (devil) and that became a news. When you register a newborn to the local government, apparently they cannot really refuse a name just because it's stupid --- so despite various people recommending against it, the child did get his name in the end.
On the other hand, in practice, parents give their children reasonable names. What they consider reasonable names do change over the time, but an essential component of it is a positive meaning, so it's very, very unlikely that you find a real person whose name means something completely ridiculous.
Characters that appear in games, animations, and/or some novels sometimes get names that you will not find in real life. This is a common technique to create a world that's intentionally away from the reality --- if you are reading a fantasy book, you do not want to see the kind of names you see in your everyday life!
Dono was right and I was wrong. The parents and the city settled and the kid did not get that name. The other thing I incorrectly understood was that kanjis used in names must come from 常用漢字 plus alpha (known as 人名用漢字). So it's far from "virtually anything."
Although the number of Japanese names (and the possible combinations) is practically limitless, there is an imposed limit on the way they can be written. As far as kanji are concerned, only the Jinmeiyō kanji and the Jōyō kanji can be used in names in Japan. As of now, that's a total of roughly 3000 characters that can be used. Hiragana and katakana can be used, as well, of course.
Another point that I'd like to add here is that the readings of the kanji can also be totally arbitrary. The only real requirement is that the kanji come from the list. A recent example of this phenomenon is the name るな written as 月. For those who don't see the connection, るな comes from "luna," the Latin for "moon," and of course 月 means "moon."