I picked up Skylanders along with six extra figures for Kian this Christmas and he was super stoked to open them. We play a lot of co-op together and this game looks great and scratches that old collectible itch for me. My Holiday Shopping Guide Post said that Skylanders was a great choice this holiday season, but had no idea just how fun the game is.
The basic premise is that you play as a portal master and the game comes with an actual portal device that you hook into the USB port of your console. There are versions for the 360, PS3, Wii, 3DS and PC. Each figure comes with a registration code for skylanders.com so you can play the web version as well.
They did a really great job of making the different character types worthwhile in the game as well. You can upgrade each Skylander as you play through the game giving them more powerful abilities as you play. They also integrated them into the world by having gates to certain areas that require a Skylander of a particular type(Fire, Water, Magic, Tech, Air, Undead, Earth, Life).
Unlike a lot of kids games out there, Skylanders is really well done and a blast to play. I highly recommend it. The only downside we've found so far is that achievements are only given to the first player, luckily Kian plays alone when I'm not home so he's getting them as well :)