I understand what you're saying but I think back to offerings from the 1980's like the G.I. Joe U.S.S. Flagg which is to date the largest playset/ vehicle ever produced and was about 4 feet long. Those things may not have sold like other vehicles, but it did sell. Back then they could make sets like Castle Grayskull or Snake Mountain and so many countless large playsets that took up considerable shelf space and they sold like gangbusters at retail. Even though I don't collect the toys anymore I still have a habit of looking down the toy aisle just to see what's being produced and I see LEGO boxes for things like a Millennium Falcon that take up considerable space.
Minor point, but the U.S.S. Flagg was actually
7 feet long.
But you're right about the changes in the toy industry.
Back in the '80s and '90s, we still had dedicated, large-scale toy stores. Toys R Us, Kiddie City (here in the Philadelphia area, anyway), Kay-Bee Toys, etc. I mean, think about a single store like Toys R Us, laid out like a Home Depot, with nothing but toys as far as the eye could see. There was also a synergy between toys and the cartoons and commercials being shown to kids, which was itself all on at most 6 stations if you didn't have cable (3 VHF, 3 UHF). Cartoons were in syndication, and it was a whole pipeline where new toys would be featured in the shows, new toys would get their own show of varying length, etc., etc.
So, back then, it made sense to dedicate huge real estate -- and therefore shelf space -- to toys. Over time, though, Amazon and online retailing generally has changed a lot of that, as has the disruption in the media infrastructure. We cut the cable about a year ago, but had been streaming exclusively for pretty much the last 6 years, so my kid has literally never watched regular TV with television commercials. She streams everything. The closest she gets is a 15 second ad on a Youtube video. Instead, "commercials" end up being these stupid, low budget self-made shows where kids play with toys for 15 minutes and they try to wrap a story around it while the folks get endorsement cash from the toy company. Or it's some show where a kid unboxes this or that piece of crap because they have a popular Youtube channel and got the toy for free. That's advertising now, and it's a lot harder to get your product in front of kids.
The pandemic further screwed things up for retail. My kid has been to a Target maybe 5 times in her life that she remembers. We get almost everything from online. As a result, she loses her mind over the trash toys at the drug store. The concept of a Toys R Us from back in the day would
melt her brain.
And let's remember, a Target or Walmart or whatever is maybe 2-3 short aisles of toys, all competing for space. It's a far cry from an entire huge store being dedicated JUST to toys.
These days, I think the theory is that, instead of mass production, the company will make a finite number of items for a fixed rate that they KNOW are gonna move, rather than a gazillion different toys and hope that they can get enough kids interested. Like, think of it this way. Back in the day, a company like Hasbro would make a gazillion different molds for different G.I. Joe characters and produce a crapload of them, without really knowing which ones were gonna be a hit. They probably didn't have nearly the capacity for data crunching that they do today, either. So they'd create a ton of molds for, let's say "Snake Eater" and "Ramrod" and "Hard Country" or whatever code name they dreamed up (I'm making up code names here just to illustrate a point). Maybe they'd produce equal amounts of every character or slight differences, so 4000 Snake Eaters and 3500 Ramrods and 3200 Hard Countrys. But then it'd turn out that Hard Country was the most popular figure of the line, and Ramrod was selling only, like, 20% of units shipped. And maybe they'd end up with boxes where there were, like, 47 Snake Eaters and only 2 Hard Countrys or whatever, so stores would end up having tons of Snake Eaters sitting, collecting dust on the shelves, and so on and so forth.
Compare that to a model where you produce a fixed run, with fixed costs, and you are guaranteed 100% sales on the item because your audience is all but guaranteed to buy them. Likewise, a kickstarter makes even more sense because you get your orders BEFORE you have to even produce them. If the whole thing turns out to be unpopular, you've spent far less money tooling up your line for production, and can move on to another product. It's not meant to be an "Oh please fund us, we don't have the money to do it ourselves" thing. It's meant to be a "Let's see if this item is actually popular enough, so that we can maximize our profits to the last penny."