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For Skylanders games you could say there are two locations. Your game progress is saved on the console you are playing on. So things like your progression through the game's levels or story, any achievements you have completed, and access to any in-game content you've unlocked, are all stored in your console's save file. However, individual Skylander figure progression is stored on the figure itself, using its built-in NFC chip. This allows you to transfer it between games and keep its progress intact. So things like the level of your character, how much gold they have, the hat they are wearing, and the skills they have unlocked, are all stored on the figure itself.
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