The third Skylanders video game features figures that can transform.
Skylanders: Swap Force comes with over 50 new toys, 16 of which can be split in two and combined together to form different combinations.
In a demo shown to ToyNews and sister publication MCV, a water character called Wash Buckler (pictured) was given the wheels of another character called Magna Charge, allowing it to move faster but retain its water guns.
There are 256 different Skylanders possibilities out of just 16 models.
Activision is also introducing 16 new Core Skylanders, 32 core versions of fan-favourite Skylanders and eight new LightCore Skylanders.
All previous Skylanders from Spyro's Adventure and Giants will work in the new game. Characters can also jump for the first time.
Eric Hirshberg, CEO of Activision Publishing, said: "With Skylanders, we didn’t just create a beloved new franchise, we actually created an entirely new category that brings the world of physical toys and video games together like never before.
"And now with Skylanders Swap Force, we are pushing the genre we created forward with another big innovation: customisation.
"The idea that kids can customise their own characters in the physical world, and have their unique combinations recognised in the virtual world, is an idea as big as the concept of bringing toys to life itself."
Jerry Storch, Chairman and CEO of Toys R Us, commented: "Skylanders Giants was named on our 2012 Holiday Hot Toy List for good reason – it extended the franchise’s breakthrough game play and its performance in retail has been incredible. We’re continually impressed by the originality that Activision delivers in bringing toys to life."
Founder and studio head at Vicarious Visions Guhu Bala told ToyNews: "The thing about Swap Force and swapabilities, is that it works from a toy play standpoint and a gameplay standpoint.
"Now you can really customise to your play style preference, and as you grow your collection, the power of that customisation grows exponentially as well. It also reinforces the playing together part of it.
"Children aren’t at the point yet where everyone is an anonymous competitor online. It’s really about the schoolyard, the living room, where the relationship is with your friends in person and with physical things. And Swap Force really fits with that and reinforces that. It takes what made Skylanders great in the past two games and takes it to the next level."
The new Skylanders title has been revealed shortly after Disney announced it would be taking the hit series on with its own Disney Infinity video game and toy figure offering.
Skylanders is a global phenomenon. Last year in Europe is was the third biggest video game franchise behind FIFA and Call of Duty, with 19m toys sold across the continent. 6.2m Skylanders figures were sold in the UK alone.
Skylanders: Swap Force will launch on PS3, Xbox 360, Wii U, Wii and Nintendo 3DS. However, more compatible video game platforms could follow.
Skylanders Swap Force will be featured at New York Toy Fair 2013 from February 10th to 13that the Javits Center in New York City, in booth 3061.
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