darkSpyro

It sure seems like it is, at least compared to the first game.

There is a LOT less of it in the wild (Breaking things), and yes, its worth less.

Yup. Enemies also drop less EXP if compared to other levels.

From what it seems, Easy gives the most EXP and gold drops than normal and by comparison, Hard. If I had to guess, Nightmare would probably be a....nightmare...to level up your characters.

That's why I kept the difficulty at easy most of the time (except for the final boss, where I changed it to HARD, still kinda easy..)

If I want to level up my skylanders I play on easy mode but when I want to play for fun I switch to hard mode.

You know what I don't get? Damage is scaled based on level in this game, and leveling up ONLY gives hp in this game. Not only that, but being at max level gives you more than double the damage that level 1 gives in nightmare mode, but you only have double the hp, which defeats the WHOLE purpose of leveling imo. You might as well just save your S2 skylanders until you unlock nightmare, but in the meantime, use the hidden chest glitch in Spyro's Adventure for Wii to get max gold while keeping them at level 1, then buy all their upgrades in giants, if you plan on doing nightmare for the hat (which is mostly just for bragging rights, but also to give a SLIGHT edge in a mirror match in pvp, (mirror match means same Skylander, variant, heroics stat boosts, upgrades, (if series 2 (because if not, then having the same upgrades would necessitate you being the same path anyway)) path, series, and level)