Penis Man is not a game character. During livestreams, Pewdie occasionally likes to show his MS Paint skills by drawing caricatures of famous youtubers (e.g. Tobuscus, Robbaz , RWJ, etc.) and making the viewers in the livechat guess who it is. When he gets tired of it, he draws random characters with a lot of penises included.
In one particular livestream session (May 23, 2012) while playing Amnesia, Pewdie had an encounter with a Bro that made him rage quit. In an attempt to calm himself down, Pewdie opened MS Paint and started drawing a random character with lots of penises attached and a small message beside him that said: "Don't be sad PDP"; All this while listening to "Its so nice to be happy!!..sha-la-la-la-la! ."