As far as I know Amiibo is something like Skylanders.
It's a digital character that can be summoned by using the toy.
As said in the E3 presentation you will be able to unlock the characters at Super Smash Bros. U as plain characters but you can also play with your Amiibo character. When you play that last one you can level up etc. Get skills and ofcourse costumize Mii Character.
If Nintendo does this right with online and will put people with a lvl 50 character against someone of the same level I don't have any problems with that.
Also it would be soooooooooooooooooo cool to have Pikachu racing against Mario in Mario Kart 8.








