First off, inventing words is generally frowned upon, especially in formal situations. In some cases it may even make people reflect negatively on your intellect, or be taken as offensive.
That said, in cases of humor, on very informal context, then yes it would be fine, as long as the audience you're speaking to will understand what you mean. This is best achieved by using a real word, and adding a common prefix or suffix to it, or by making it into a verb, as you are suggesting. That said, even if you make up this word, its use should only be tied down to that context.
Also, if a word could possibly be confused with an already existing term, you must take care to make it clear in the context. In a case like this, perhaps it would best to avoid creating the word.
Example of Bad Time:
Boss: Why are you late?
You: I overslept. I was up late Quaking it up!
Example of Good Time:
Best Friend: Are you ready to play?
You: Heck yeah! I've been ready to Quake for over an hour now!
I hope this helps! :)