WHat? don't give up, his hair looks very good.
Just remember that you need a version with him cut out. I dunno how the sprites work, maybe they just need to be on pure black or another color for the game to make that color transparent, but some of the game art I looked at definitely had alpha channels/masks.
You know what an alpha channel is? An integrated channel that serves as a mask to make parts of an image semi-/transparent.