Starting the game with a level 10 Spyro is more fun than starting it with a level 1 Spyro, IMO.

saying that brings back memories of playing Spyro: ANB with every breath (and super-special-triangle-button-power-whatever-it's-called) upgraded all the way. it was fun, except in some of the training "levels".

like electricity for example. when you have to move the enemies into those targets using your breath, it's so hard when the breath is maxed out because it always moves more than one, putting them in spots it's almost impossible to hit the targets from.

just something to keep in mind.

I don't think that it would hurt the replayablility if you couldn't restart.  I think it's more of where you are as a player, than how far you are in the game.  The figurines are 'glorified memory cards' but that doesn't mean the game doesn't save on the console's hard drive.  Starting the game with a level 10 Spyro is more fun than starting it with a level 1 Spyro, IMO.

Really I think it depends on the gameplay. Like, if the majority of the rewards you get for completing side-quests is massive amounts of XP, it would probably get annoying to replay with a lv. 10 character, but if there's more stuff like gems and other collectables as per the original series, I can see it not making too much difference.

Like a memory card, each toy saves information on your character's progress and leveling in the game

Okay, but what I'm asking is if, after you've, say, beaten the game and leveled up all your toys completely and don't feel like buying another one, can you reset a toy to level 1 so that you don't have to play through a new game with a fully leveled up character? You know, for the sake of replayability? Is it too early to say for sure yet?

Is there going to be a VS mode?

Yes, that's been confirmed.

But how would a second save slot for each character work if their stats are remembered between consoles?

I mean, obviously you could use your max level toy to just ram through all the levels with ease, but what if you feel, like, say, starting over with a Lv. 1 Spyro? Do you have to buy another one? Or do you think maybe there's some option on the game to "reset" a character's level?