Activision CEO Bobby Kotick intervened and delayed the game by a year in order to make the game "great".
"Kotick said, 'You know, this game is good. I think it can be great. I need you to spend another year making this great'," Reiche told Digital Spy.
"[He asked,] 'What can you do to make this not only innovative but so far ahead of what other people are doing?'
"And that's when we added the memory inside the toys. Back then, it was a complicated save-game mechanism that didn't feel magical."
He added: "I will always credit Bobby. He was the guy who helped us make Skylanders really great and giving us the time and money to do it. That was a good decision."