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.
This episode originally aired on April 1, 2019.
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This is an unofficial transcript meant for reference. Accuracy is not guaranteed.
Quandary
it's early nineteen, eighty one
and inside Hasbro offices in Pataque. It Rhode Island.
Two men are waiting nervously in the corridor outside the company's auditorium inside
Yo Stephen hashing felled is revealing new product ideas, and these two executives are due to pitch their latest concept any moment now,
or of the two looks up at his tall broad shouldered colleague,
Is this a good idea? I mean
this isn't just any old toy. It's got emotional baggage.
Larger man shrugs, as he puts on a green army jacket. Then,
I hear the sound of Henry Film patriotic anthem, Americans we coming
inside the auditorium.
Well, it's too late! Now, that's my cue. Don't forget this.
the large man takes a steel pot helmet from his colleague and pulls it down over his head. So at all
like muscle in these long lost brother.
screw you and with that
the man of the helmet an army march,
into the auditorium. He stopped
The lectern stands to attention the lights or dimmed, but he can do
about make out Hassen felt map of curly, hair and big glasses. He saluted
ceo and starts the pitch coming,
the enemy has surrounded
but we shall never surrender we shall fight but
We are to win this war commander we're going to
a hero,
our real american hero,
we're going to need?
he who theatricals over he hands
the presentation to his fellow Hasbro executives, who explained why
company should resurrect Gee. I Joe.
Jos been missing in action, since seventy eight following is ill fated phase is a superhero. Since then the
toymakers Kanner has captured
all the action figure market with its star wars, dolls, but the has Brodie
reckons it's time to strike back
Ronald Reagan, just entered the White House and patriotism back in vogue. Also, there
be a new star wars movie and nineteen. Eighty two now
their chance to make inroads before star wars, fever returns the team
This is for their see. Yo reaction has been felled, doesn't pull punches in these meetings, and today is no exception, are not approved,
you have no hook star wars has a hook. It's got a movie
giving you a two out of ten ouch in
synthetic world. Anything below aid is unacceptable. One of the executives leaps to his feet,
You keep saying role the business growled the business, but then you
Jack, every idea. We have you keep this up. I'm quitting
has fell leaned back in his chair, he's torn
gee. I jus hold a special place in his heart. His father help in
do the groundbreaking toy, but
He doesn't want to let sentimentality cloudy decision. Fine, you,
two weeks to craft a pitch worth my time. The team is surprised.
By their stay of execution, but now
I really on the only guy
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For I'm wondering I'm David Brown, and this is business wars in the last
episode, Mattel got caught, play
make believe with its accounts, while has broken,
go to survive the seventies now,
it's the early, eighties and Mattel's back on track. It shaken off its books. Cooking.
Cattle and plugged into the new video game. Craze
its home video games cancelled the in television is deliver.
Hundreds of millions of dollars and sales every year has road.
Stephen has failed, can only watch with envy. Hasbro can afford
get and video games so
he's hunting,
a toy that can revive is companies fortunes. This is episode for
resurrection. Joe.
the Hasbro Boys team is back in front a passion filled after two weeks scrambled to redo their botched Viejo pitch. They know today's they're fine
chance to revive the company's iconic soldier doll. Hasn't
settled in his chair and see.
Those for them to start the team.
In the light. But today there are no theatrical just advertising cheap job or call sly projector.
You're right, we don't have a movie, we
something better. He clicks to the first slide. A market of a Georgi Comic
We ve got a marvel comic. It will tell
The story of July, Joe and elite peacekeeping force that defends the world from the terrorist group. Cobra we're going
Give marble the entire gee I Joe add budget, so they can promote the comic using animated TV at the comic,
Those commercials will reach way more kids in star wars, because kids can only see star wars when it's in theatres.
That's our hook the team waste
perhaps entails response, but he says nothing, so they turn out the lights.
Having felt at the back of the room are those tears.
welling up in his eyes. Finally, he speaks
I wish my father was alive.
To see this
I'm going to the cemetery.
To tell him
gee I Jos, back and with that has impelled leaves the room
but has rose, not the only toy maker plotting to take on star wars. Three
thousand miles away in LOS Angeles Matter
I was also preparing an assault on the action figure market for Mattel
aging star wars, isn't just
about money. It's about pride to.
in nineteen? Seventy seven, the company turned down the rights to star wars. Half a
in dollars to make toys for a no name movie from a little known director
like a really dumb idea. Back then
Companies been ruling that decision ever set, but now Mattel thinks
It has a star wars killer, a line of phantom
local action figures called them.
Sisters of the universe, but matter
wants to be sure about its new idea before starting production and that's why it's invited toys are us to its Ella headquarters for a preview.
As the toys US buyer watches, Mattel vice President Mark
This introduces the figures lined up on the meeting rooms table. Each one is locked in a ready to fight pose he
grabs improbably muscular barbarian with blonde hair,
hey man he's the hero in the most powerful man in the universe, next Alice Ground,
the Blueskins beef cake with a skull face, Andrews Hood and there
Is he man's arch enemy? The evil
skeleton. Now let me show you what makes him really special after placing
two figures knows too knows on the table. He pulls
He man's right arm, causing the figures torso swivel round, then Ellison.
let's go and how he man snaps
into place in his clenched fist, slams into skeletal singing the evil one flying. That's the point
patch scheduled, though not for this next Ellis
and the buyer, a pocket sized comic book two weeks,
this comic didn't exist, but after their first tour
Buyer complained. There was nothing to explain the characters Mattel quickly created. This illustrated guide.
We figure will come of what these comics, which will tell the masters of the universe story. The buyer looks puzzled.
thought. You said these words for five year olds: well, five year olds, don't read what use is a comic alice.
Fields a surge of panic. Toys are us care,
reject masters of the universe, the two big of a chain, so he improvising
I forgot to mention the animated tv show. The man for
Toys are us, leaves happy, but now my
I've got a tv show to make it teams.
The cartoons studio,
The animated series won't be ready for almost two years until then
demands going to have to battle gee, I Joe without tv, backup.
in early nineteen, eighty two Hasbro admit
rival action figures, arrive in stores and
Of the new lines, so fast Mattel's
so bound figures gross almost forty million dollars that year double what the company expected.
But there are no match for Hasbro July Joe, what the hell
but the tie and Marvel Comic it ranks in
fifty million dollars, but then in sick
timber nineteen. Eighty three Mattel's, he mankind,
soon hits the air
and
dies have the power boosted.
I see a tv show mass.
Of the universe. Sales rocket pass. The hundred million dollars a year mark Hasbro quickly,
follow, suit and launches a tv show to promote its latest bed for toys, supremacy
but even those that
Toy Giants Duke it out for kids, eyeballs Mattel
hitting the skids, and that's because
tells video game? Dream has become a nightmare
the early eighties. U S! Video game boom has just gone bust. A bust
by massive discounting by over exuberant retailers, who ordered way more video games than consumers want it now home.
video game sales are in freefall, plunging from
three billion dollars a year business to a puny.
Hundred million dollar business, the crew
ash pushes almost every company involved in video games to the edge of ruin and is one of them.
His players and video games
tell is among those hit hardest.
in nineteen. Eighty three, the company's videogame operations deliver more than four hundred million dollars in losses. It's a lost big enough to push Mattel to the verge of bankruptcy,
but it's far from the only toy maker to get burned by the video game crash its April nineteen. Eighty four
in Springfield Massachusetts. The Milton Bradley Company is in trouble, but companies,
been around for close to one hundred and twenty five years, making top board games like life, candy land and
battleship, but then last year it launched its
first Home Video Game Council, it sank,
the resulting losses of left Milton Bradley Vulnerable Predator
conglomerates are circling, sucking up its stock and preparing Hoss
takeover bids in his would paneled office
and Bradley Chairman James Shea and his marketing chief
debating how to fend off the corporate vultures. We ve got to protect the company
not bear the idea of us ending up part of some faceless conglomerate like that that british one Hansen gas there
Bricks run clothes stores and who knows what else?
probably don't even now. I think we need
start buying back our stock, but
that make us more vulnerable, it would drain our cash reserves yoke
If I take this short shea hits the Speaker phone book.
James Shea Senior dreams, it Stephen House and fell from Hasbro.
we'll keep you I just wanted to. Let you know what with everything
That's going on for you that that, if you need it,
night. Well, I'm here now
Well, thank you Stephen. I let you know shake cuts. The call in pools of fate
can you believe that state
Hash and fell wanting to be our white knight.
Do you think he is Hasbro was
over a couple years back, but Milton
Thirdly, situation only gets worse.
after realizing. He can't save the company from a takeover shit
swell his pride and calls Hassen fell,
and bells delighted and relieved he hoped is white
offer would pay off, but until this moment he
no way of knowing. If the plan would work Hasbro by
Milton Bradley it's a d:
but instantly allows has brought a leap, Frog Mattel and become the world's biggest toy company, but hasn't
It's not the only one making deals in July.
Nineteen eighty four Mattel
secures a lifesaving deal. A too
million dollar cash in fusion from attack
of Wall Street financiers, bankruptcy, averted, Mattel goes back to basics it offline.
judge, troubled video game division in a fire, sale and refocuses on toys and the Good NEWS
His Mattel's toys are thriving,
Masters of the universe. Figures are selling like crazy and barbies bigger than ever before,
these back in the limelight thanks to an overhaul of her business model. Instead of
concentrating on selling closed for the doll
tell us now encouraging girls to by multiple dolls, by releasing themed barbies with exclusive outfits.
Now there are multiple types of barbies from shoulder: padded
this woman Barbie to fashion genes Barbie with her pink MO hair sweater in Blue Denham Barbie,
ads are also tuning into the rising status of women in the workplace and so dizzy little bud
rose, got greedy eyes on barbies bumper profits. It
secretly working on a doll for the MTV age. She's called jam, she's got bushy pink hair and France, a rock band called the
the gems even got a bunch of rock rivals, called the misfits we're going.
Give Hasbro Doll the perfect storyline for a tv, Khartoum,
Hasbro reckons gems, going to blind side Mattel when she day abuse Toy fair in February nineteen, eighty six. But what,
company doesn't know, is
Mattel is already on to its secret plan b,
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Its October nineteen. Eighty five,
Barbie Marketing director GEO Barsad is holding a strategy meeting with her team
Murat is arising Start Mattel, an executive within
I for trends, moving
star looks and a will.
Power, that's making her assent up the ranks unstoppable. Suddenly her pager starts buzzing.
Maria glances, at the message it sprung her boss, Barbie Chief Judy shackled
The message reads: drop everything urgent meeting in my office. I have to go
broad puts on her bubblegum pink, shall suit jacket and heads to Shackelford Corner Office
when she arrives the rest
Barbie's. Top team is already there Shackelford brings ever.
going up to speed additive up.
Ass rose, going to launch a fashion doll called jam at toy fear. It's going to be around
STAR Doll, Maraud breaks into
broad smile. We gotta.
star Barbie in the works weaken fast track. It
get it ready to show a toy fair, that's what I'm thinking but but
more than that. I want rock star Barbie in stores before jam. Let's make it
like Hasbro copying us plan in place
Mattel moves like lightning normally takes eighteen months for a time
way to go from prototype to store shelf, but
bird on by the threat from Hasbro Mattel delivers
pop star barbie to market in just five months.
In March nineteen. Eighty six,
he'd singer, Barbie and her banned the rockers arrive in stores, complete with big hair instruments and microphones and here
tv advertising
two months later jam
follows with her own barrage of tv ads
It's too
too late, though Mattel's
They strike derails gems bid for started by the end of the year,
gems, already headed for the way
Are they now file? Not that has run
chief Stephen hasnt belts, giving up on fighting barbie and
Nineteen, eighty eight, he hits on a new attack strategy a few years earlier.
Hasbro bought the rights to a British Dolokhov Cindy. She might lack barbies California glamour
since her debut in nineteen, sixty eight Cindy
It's been a serious challenge to Barbie in the UK and now.
hush, impelled wants to user to defeat BAR
in all markets outside North America, but First
she needs, a bit of plastic surgery
Hasbro orders and make over there
if Cynthia more angular face suntan, a nose, job, all pink packaging, more fashionable clothes,
and even a smile
The time has brows designers are done
Cindy looks a lot more like Mattel's material girl, and
That's got Mattel Snowy Haired, CEO John Amman, worried he's.
He's growing barbie sales outside the. U S is critical to Mattel's future now
the transformation of Cindy is poised to torpedo that plan. So
when Toy Fair comes around in February nineteen. Eighty nine Amman invites
and fell to his Manhattan, hotel, sweet,
for a one to one as well.
and felt enters the sweet,
the two rivals I each other wearily
soon fell, looks thinner than airmen remembers.
But it's not like the two crossed paths often stay
thanks for coming, please take a c nice sweet,
So what's this all about, I want
I'll talk to you about sending Hassen fell, folds his arms. What about
heard, no luck but pink packaging, its indistinguishable from Barbie I
wants you to go ahead with her ass. He is
Cindy's an original she's, no bar.
A clone admiral
was afraid. Hasn t would react like this Stephen
I'm trying to settle this amicably law, the
Cindy is going ahead. No one tells me what to do
least of all you.
think this meeting is over
making a mistake. Stephen has
thou glances at Amazon, and then
watch out. Fine thanks, Averment
no more, MR nice guy. He calls
Mattel's lawyers and ordered them to strangle Cindy with red tape. Bury her in lawsuits. That's bring.
as Hasbro Start shipping. The new Cindy across Europe, Mattel
turning these strike in country.
Your country, Mattel files, accusations of copyright, infringement counterfeiting and unfair
competition in some
countries, it even persuade
customs officials to impound Cindy shipments, but
as the lawsuits pile up, has brows attentions or elsewhere.
it may? Nineteen, eighty nine and Hassen Feldman rushed to a New York City Hospital. He might be the acclaimed
ass of a fortune, five hundred company, but he's
bent his life, fearing that his career would be destroyed.
Sexuality ever became public fears,
It only deepened after he was
I note with HIV with effective HIV
Treatments still years away,
the diagnosis feels like a death sentence and despite his boyfriends, please
Stephen Hassen filled refuses to tell his family for Alan Stew,
younger brother and Hasbro international boss. The truth only becomes clear.
He sees the precaution sign outside the hospital room.
Yet even now on his death bed,
has been filled, won't open up. Instead,
He wants to hear how talks to get the right to produce cabbage patch dolls are going
out and leaves the hospital hoping that
tomorrow, he and his brother will talk, but that tomorrow never comes.
that night hasn't filled slips into a coma.
A month later, the man who took
I wrote to the very top of the toy industry dies
on the next episode. Alan
some felled steps uneasily into his brother shoes,
war breaks out over scrabble and a resurgence. Mattel makes a marriage proposal
from wondering this is episode for of Hasbro versus Mattel, for business wars.
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