CD-Keys aren't much of a security for any non-networked stuff, so technically they don't need to be securely generated. If you're on .net, you can almost go with Guid.NewGuid().
Their main use nowadays is for the Multiplayer component, where a server can verify the CD Key. For that, it's unimportant how securely it was generated as it boils down to "Lookup whatever is passed in and check if someone else is already using it".
That being said, you may want to use an algorhithm to achieve two goals:
That being said, you still want a large distribution and some randomness to avoid a pirate simply guessing a valid key (that's valid in your database but still in a box on a store shelf) and screwing over a legitimate customer who happens to buy that box.