It’s the early 1980s and things are not looking good for Hasbro. The company hasn’t had a hit since Hungry Hungry Hippos; its founding CEO Merrill Hassenfeld has just died; now Star Wars dolls have just about gobbled up the entire action figure market. Hasbro needs to deliver a toy capable of taking on the Star Wars dolls, or else the company risks losing its only source of stable income, the family pencil factory. But Hasbro’s not the only toymaker plotting to take on Star Wars. Three thousand miles away in Los Angeles, Mattel’s also preparing an assault on the action figure market. A line of fantastical action figures called The Masters of the Universe. Support us by supporting our sponsors! See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

With the world plugging into the Internet, toys are under pressure. Kids are swapping plastic play for screen-based entertainment and both Mattel and Hasbro need to adapt. The question is: how? Mattel’s also finding out the hard way that Barbie’s reign as the queen of dolls is no longer secure. Challengers to her throne are emerging and the first strike against the dream doll comes not from Hasbro, but from within its own offices. You can find new episodes of Business Wars, completely ad-free, only on Stitcher Premium. For a free month of Stitcher Premium, go to stitcherpremium.com/wondery and use promo code WONDERY. Support us by supporting our sponsors! See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.