Aside from that primary pic, where it does look like it's wearing red lipstick, I think it looks great. Captures the monstrous, mutated look of the suit really well.
Also, the pics of it next to the upcoming Godzilla 89 SHMA indicates that this'll be close to 8" tall.

Skulls? Where is anyone seeing a skull in his tail??

It doesn't look like a skull to me. I think it looks as if the tip of chis tail was cut off or growing back.

A number of people have pointed out that the ridges in the exposed region of the tail tip resemble whale skeletons; Google image search Shin Godzilla tail and you'll likely find at least one zoomed in shot of the region in question.
That being said, not sure the absorbing other monsters theory is too likely. Everything shown thus far indicates a "Japan vs. Godzilla" kinda movie, including the numerous similarities to the original. (trailer even shows Shin Godzilla attacking the same region where the original first attacked). I suspect they're supposed to be either whale bones that were fused into him during whatever created him (they are really pushing the scarred, burned, mutated look with this design) or they're scars that incidentally happen to look like something else.
As for the Godzilla monster A and B thing, those could just as easily be new figures of older kaiju that don't actually appear in the movie, or just variants of Godzilla himself.

Yeah, after looking at the pics a bit more I'm in providing there's not much else out that month. Price is a bit more than I'd like but oh well.

Looks like Bandai released a video about the figure.

https://www.youtube.com/watch?v=6Jad4ivN_VE

Some images also got released.

http://figsoku.net/wp/wp-content/upl...om-400x500.jpg

http://figsoku.net/wp/wp-content/upl...om-400x308.jpg

http://figsoku.net/wp/wp-content/upl...om-400x565.jpg

http://figsoku.net/wp/wp-content/upl...om-400x500.jpg

I so hope this movie comes to dvd next year.

The figure is awesome, don’t get me wrong, but the design is butt ugly. The pic where the mouth is open - looks like burnt hand puppet. Plus the baby arms and the giant tail... nope.

I would love to support SHMA since I love the line but I can’t possibly pay the money necessary for a figure I don’t want.

He's so derpy and I love it. Probably be the only G16 figure I'll get though.

Oh wow, he can open his mouth reeeeeeally wide... between the tiny dino arms and huge mouth, I'm guessing any eventual monster fights this design might get into will involve a lot of biting.