Nintendo announced during their E3 2014 digital presentation that the company will be jumping into the physical toy-video games business with their line of figures called "Amiibo." Amiibo are physical toys that users can buy and incorporate those characters into video games, much like the Disney Infinity or Skylanders series.
The toy figures will incorporate NFC technology and will work directly with the Wii U Gamepad by placing the toys on the pad. A demonstration was briefly shown with Nintendo CEO Satoru Iwata facing off against Reggie Fils-Aime
Nintendo has announced that Super Smash Bros. will be the first supported title that will incorporate Amiibo. Players can buy Amiibo toys and incorporate the characters into fighting matches for the game. Characters' traits and abilities will evolve and change as the player uses the figure. Each amiibo retains the user's data and properties that will make each figure unique, even against the same characters.
The company expects to have 10 amiibo characters ready in time for the holiday season. Nintendo is also working on updating current games, such as Mario Kart 8, to incorporate amiibo as well.