The Toys That Made Us

Searching for a new toy line for boys to compete with Star Wars after their toy lines for Clash of the Titans and Flash Gordon flopped, designers at Mattel saw inspiration from Frank Frazetta's artworks, as well as their creative imagination, and launched the Masters of the Universe action figures. The toy line dominated in sales from US$38.2 million in 1982 to US$400 million in 1986 before its demise in 1987 as a result of sales dropping to US$7 million and the critical and financial failure of the live-action film adaptation.

In 1983, when Hasbro was looking for a fresh, new line to sell alongside G.I. Joe, they bought the license of the Diaclone and Micro Change toys from Takara, then commissioned Marvel Comics to come up with a story-line and character names for the toys. The result: Transformers. Despite Tonka releasing the cheaper Gobots line six months earlier, Hasbro's Transformers took the toy market by storm in 1984, raking in US$150 million that year. At the peak of the toy line's popularity, The Transformers: The Movie hit theaters to further capitalize on its success, but the film polarized fans and collectors with the death of Optimus Prime and majority of the original characters. As Hasbro took full control of Transformers from Takara by the late 1980s, sales declined until the toy line was discontinued in 1991. After the failed Generation 2 reboot, Beast Wars rejuvenated the franchise in 1995. In 2007, the live-action Transformers film solidified Transformers' position as Hasbro's flagship toy line.

After leaving his job in the government, Japanese bureaucrat Shintaro Tsuji formed a toy and gift company in 1960 that would later be known as Sanrio. The company had success producing merchandise for popular manga such as Anpanman before purchasing the license for Peanuts. But after being fed up with paying royalties to Charles M. Schulz, Sanrio decided to create their own characters. In 1974, Tsuji and designer Yuko Shimizu worked on a cat-based character that eventually became Hello Kitty. Since her debut, Hello Kitty has become not only the best–selling girl's toy in Japan, but also a pop culture icon for all ages worldwide, earning at least US$5 billion a year.

In 1984, Kevin Eastman and Peter Laird released the first Teenage Mutant Ninja Turtles comic book. Their self-published work quickly grabbed the attention of Surge Licensing President Mark Freedman, who saw a potential gold mine in the characters. After being rejected by LJN, Mattel, and Hasbro, Freedman got Hong Kong-based Playmates Toys to pick up the Ninja Turtles license for US$150,000. Once the violence level was toned down and the characters were given a lighter, more humorous tone, a five-episode animated series debuted on December 28, 1987. The cartoon's popularity prompted the huge demand for Ninja Turtles action figures in 1988, as toy stores had difficulty keeping them in stock. At the height of the franchise's popularity in 1990, a successful live-action film was released and over 100 million toys were sold. Eastman and Laird later split over creative differences, and the franchise was eventually purchased by Nickelodeon in 2009 for US$60 million.

Following the success of Kamen Rider, Toei Company and Bandai created the Super Sentai series in the mid-1970s, later incorporating the giant robot element from their Spider-Man series. Finding a western audience for Super Sentai, however, proved to be difficult when Stan Lee and Margaret Loesch failed to get networks to buy Taiyo Sentai Sun Vulcan. In 1984, Haim Saban bought the international distribution rights of Choudenshi Bioman from Toei, but his pilot episode was rejected by the networks. Eight years later, Saban partnered with Loesch to adapt Kyōryū Sentai Zyuranger for North America. Upon its debut in 1993, Mighty Morphin Power Rangers was a smash hit for Saban, Bandai America, and Fox Kids, with over US$1 billion in toy sales that year. The franchise was purchased by The Walt Disney Company in 2001 before being sold back to Saban in 2010, then to Hasbro in 2018, effectively ending Bandai's involvement after 25 years.

During the 1970s, Hasbro was on the brink of bankruptcy due to the oil crisis. The company's Advanced R&D Department came up with My Pretty Pony, which sold 500,000 units in 1981. A year later, My Pretty Pony was shrunken down, made with softer plastic materials, and painted in bright pastel colors to become My Little Pony, which made US$80 million on its first year. In 1984, the toyline's first animated TV special Rescue at Midnight Castle was released, followed by a theatrical feature film and a TV series in 1986. My Little Pony was discontinued in 1992, but was revived in two generations with mixed results. It was in 2010 that animator Lauren Faust fully revitalized the franchise with My Little Pony: Friendship Is Magic. The show and accompanying toyline became heavily popular not only among girls, but also a male demographic known as "Bronies".

In 1984, MCA Inc. subsidiary LJN outbid Galoob and Remco to become the first toy company to manufacture figures for the World Wrestling Federation (WWF). LJN took the 1985 Toy Fair by storm with their WWF Wrestling Superstars line. Remco counterattacked with their AWA All Star Wrestlers, but failed to outsell LJN's figures. LJN's success in the 1980s, however, was marred by the controversy surrounding their Entertech water gun line, resulting in the company's sale to Acclaim Entertainment in 1990 and the Wrestling Superstars line going to Canadian toy company Grand Toys in 1989. With LJN gone, WWF signed with Hasbro for a new line of wrestling figures that peaked at US$100 million in sales. Meanwhile, Galoob signed on to produce figures for WCW, but when David Galoob was ousted from his own company, he took the WCW license and made figures under his new company The Original San Francisco Toymakers. During the Monday Night Wars, WWF signed with Jakks Pacific after Hasbro decided not to renew their contract. In 1998, WCW dropped SF Toymakers in favor of Toy Biz for their figures; in turn, SF Toymakers signed with ECW in 1999. The war between wrestling figure companies ended when WWF purchased WCW and ECW in 2001.