Battle of the Fun Factories

(2 of 4)

That explains why many of this season's toys look like souped-up versions of previous hits. Convertible robots, the surprise success of 1984, are back in droves. Tonka's GoBots, which reached sales of nearly $100 million last year, and Hasbro's Transformers, which brought in $114 million, have been challenged this year by two riveted rivals, Voltron and MASK. Produced by Cincinnati's Kenner Products, MASK is a line of seven ordinary-looking vehicles that bristle with hidden weapons. Rhino Rig, the flagship, converts from a common truck into a fearsome fighting machine.

Most major companies have stampeded to produce a line of so-called male action figures like Mattel's Masters of the Universe. Since 1982, when the line was introduced, California-based Mattel has sold some 125 million creatures, or an average of eleven of them to each boy in the U.S. between the ages of five and ten. Children collect the 6-in. plastic figures ($5 to $7), whose personalities reflect a blend of medieval and outer-space themes, in order to enact imaginary battles between good and evil. The virtuous leader is He-Man, who fights a never-ending crusade against wicked Skeletor. So far, Mattel has produced 34 other characters, six companion creatures, nine vehicles and three hideouts. This season's oddest new villain: Stinkor, a skunk-striped meanie who actually smells bad. His counterpart: Moss Man, who exudes a pine scent.

Aside from the malodorous one, He-Man may encounter his toughest rivals in the toy stores, where this year he will face the red-hot Thundercats, from New York City-based LJN Toys, and Sectaurs, a strain of insect-like warriors made by Coleco. To give He-Man some help, Mattel has introduced his shapely sister, She-Ra, which the company hopes will get girls interested in action figures.

Not all the hot toys are warriors. The success of Kenner's cuddly Care Bears has prompted a toymaking rush to stuffed animals. The friskiest new critters in sales are Pound Puppies, a breed of soft, sad-eyed and bewrinkled hounds packaged in kennel-shaped carrying cases. They come in 80 different patterns of brown, tan, gray and white, and are meant to be "adopted," like Cabbage Patch Kids. The youngster who gets one can send to the manufacturer, Tonka, for a dog tag and ownership papers. Minnesota-based Tonka, which is diversifying from its traditional line of sturdy toy trucks, expects to sell some $50 million worth of Pound Puppies in the first season.

While the big companies are busy scrapping over conventional toys, this year's biggest breakthrough, the talking bear, has come from small entrepreneurial firms. Filled with stuffing and wiring, these toys can speak, after a fashion, with their owners. The most popular is Teddy Ruxpin ($60 to $80), a 20-in. bear whose eyes and mouth move when it speaks from a recorded cassette. Ruxpin's voice comes from a tape player in its back. The manufacturer, Silicon Valley's Worlds of Wonder, will ship as many as 750,000 by Christmas but still cannot meet demand. Says Stewart Brown, manager of an F.A.O. Schwarz shop in Atlanta: "People keep requesting it, maybe 20 times a day, but I haven't been able to get any more since I sold the first 50."