All Chapters:
Part 1: Early Tyco 1926-1981
Part 2: Tyco vs Lego 1982-1985 (You are here)
Part 3: Golden Age of Tyco 1982-1992
Part 4: The Final Days of Tyco
PART 2
Tyco Publicly Listed
With the Good Comes the Bad
In 1981 the Tyco company was sold by Sara Lee to Savoy Industries, a publicly owned investment group run by financier Benson Selzer and sons. Savoy specialized in leveraged buyouts of troubled companies which they would "restructure" before they took the purchased companies public.
Thankfully Benson was smart enough to retain Grey and Pearce, and even give Richard Grey free reign of the companies day-to-day management. Yet the two men did not see eye to eye. Selzer's intention was to use Tyco as a financial resource, leveraging its assets to expand Savoy Industries by getting Tyco involved in all sorts of unrelated ventures. Grey knew that to continue its success, Tyco would need to focus solely in what it was doing - making great toys. It was a source of constant friction between the two.
In 1986 Selzer would complete the restructure of Tyco, and take the company public. It would be his undoing. Now as a public company, he had Federal Securities Law and Fiduciary Duties to consider.
When Benson discretely loaned $2.5 million dollars to a foreign underwear company with links to his own family, shareholders revolted and took out legal action against Tyco.
This was the final straw, and the board took measures to cut him loose.
Finally, Tyco under Grey's leadership was free to do what it did best - toys.
Tyco Hong Kong
Throughout all this, it's worth mentioning that Tyco HK (Hong Kong) played a major role, not just in the manufacture of products, but also in the design of model trains and slot cars, and perhaps others.
We don't have any details on exactly when Tyco Industries moved its toy production overseas, only that it was active from at least the time Pat Dennis joined Tyco in the early 1960s, crediting the HK team for being central to bringing TycoPro slots to life with their skilled design and engineering of products. For more on this, see here.
And so Tyco HK was operating from approx. 1960 until 1991 when it closed down due to widespread industry uncertainty regarding the imminent handover of Hong Kong to the Chinese Communist government - ironic given today's situation.
What we do know is that all of Tycos slot car toys from that period were marked 'Made in Hong Kong', and it's likely the model trains were too, though they did maintain their presence in New Jersey - at least the main office, if not some R/D and limited manufacturing capability.
See the photos attached, and for more photos and history see: https://industrialhistoryhk.org/tyco-toys-1976-photos/
The Modern Era of Tyco Toys
1982
Over the next few years, Tyco would incorporate modern play set design and both licensed and original themes into their train and slot car sets.
Slot cars and model trains weren't bringing in the income which Tyco had gotten used to in the 1960s and 1970s.
It was time for Tyco to look for new designs, new properties, and new ways to market their existing technology until those new toys were on shelves.
The 1982 season saw Tyco introduce it's popular US-1 Electric Trucking series which used a standard slot car track, with larger trucks and construction vehicles, each with their own unique gimmick - usually loading and unloading materials, with associated buildings for imaginative play.
Check out our Guide to US-1 Electric Trucking Here.
Model trains continued to feature, with King Coal, Big Logger, and Pipeline Express sets among many others.
They also introduced Dirt Bike Racing, the first motorbike slots we're aware of, along with various other themed train tracks and slot sets.
1983
A year prior in 1982, Hasbro launched their G.I. Joe: A Real American Hero action figure line, alongside a Marvel Comics series.
Since children's advertising was highly regulated at the time, Hasbro brought on Marvel to produce a series of 30 second animated commercials for the comic, helping popularize and advertise their toys under the loop hole of 'literary works'.
A year later in 1983 ,around the time a full length TV cartoon debuted, Tyco licenced rights to produce their G.I. Joe Electric Train and Battle set. This combined traditional action figures with buildings and set pieces on a themed board, boosting electric train sales maintaining interest in the hobby.
US-1 slot sets continued with 'Fire Alert!' and others adding more imaginative play, while various more and more outragous slot car track styles were introduced, such as 'Cliff Hangers' which allowed their HO racing cars to scale walls.
Slots were also given the G.I. Joe treatment, with G.I. Joe Electric Trucking Sets (see commercial).
More interesting to me was the 0.49cc Nitro Powered Model Airplanes, sold as Sky Hawk and Silver Hawk. These were originally produced by Taiyo Toys (Japan) and repackaged for the western market. It's possible that this was Tyco's first engagement with the Japanese company that would play such a significant role in their destiny.
The A Team was also licensed, with an electric train set, and slot cars.
Tyco US-1 Fire Alert! Electric Trucking (1983) combined slot cars with action figures to inject new excitement into the slot car market.
1984
Interlego Vs. Tyco Industries
It was time for Tyco to launch the strategy that would propel them through the 80s... it was bold, even reckless.
The infamous Tyco Super Blocks.
Just as John N Tyler had done in the 1940s, Tyco would look at what their competitors were doing successfully, and copy it - literally- with the kind of brazen confidence that can only be explained by the fact it was the 80s.
The most memorable and unapologetic imitation was Super Blocks and Preschool Super Blocks.
An obvious facsimile of at least 8 specific Lego blocks, plus all basic Lego Duplo shapes, Super Blocks were a 1:1 copy of the most popular toy ever created. They wouldn't even try to claim originality either - in fact they would do the exact opposite They would claim in print, television, and on the product package itself that their product was identical - only cheaper!
They knew Lego would take them to court - this was merely a cost of business, quite literally factored into the budget.
And the gamble paid off. While Lego did litigate in the United States and claim victory as they had 'won' the points they argued, the ruling did nothing to prevent Tyco from continuing to manufacture and market the blocks. The only difference now was, Tyco was prevented from using Lego's logo on their packages, and from directly comparing them as equivalents. So what?
Back in Hong Kong, the courts provided a more specific ruling that prevented Tyco HK from manufacturing any brick Lego had released after 1973 - but this was no issue, as all the core shapes could continue to be released, and Tyco could merely create their own designs for any themed pieces, just has they'd planned.
Whatever Lego said, this was a clear win for Tyco who would post a $21.3 million profit from this single product alone just a few years after it's release, one quarter of it's entire revenue. A 25% increase! Grey had pulled off a miracle, and the company would continue to manufacture the bricks until 1990 when the Lego clone market became saturated and others followed their lead.
For more details see: Interlego AG vs Tyco Industries Inc.
In the 1984 catalog, Super Blocks was front and center as their new major product line, with Tyco's hopes pinned on the popularity of the building bricks seeing them through the decline of slot cars and trains.
They would begin by leveraging their only clear benefit over real Lego - value for money.
And they knew their target audience well. Large tubs with a handle were released, as the 456 piece Deluxe Building Set, and 747 piece Deluxe Building Set.
These included everything that you might expect to find in a kid's stash of Lego - various brick pieces, wheels, windows, figurines, car windshields, etc..
The only themed set and pieces was the 839 piece 2-in-1 Castles and Space Fantasy sets, presumably following market research that indicated these were some of Lego's best selling themes - space, castles, a fairly good bet.
Also released that year were the Garfield 'Personality' Phones, plus NFL and Knight Riders themed phones.
But it was the Garfield phones that would go down in the history books, and become more widely publicized than Tyco had ever anticipated after they began washing up on a pristine French beach day after day for more than 35 years.
It's a story all in itself, and we'd recommend the YouTube video (attached), or if you prefer an article, this story: Solved: The 35-Year-Old Mystery of the Garfield Phones on a French Beach
Beyond the Super Blocks and Personality Phones, Tyco would continue to maintain their usual slot car and electric train sets, though few new sets were released. Among them was the A-Team Action Train Set with Adventure Play Mat, and the G.I. Joe Electric Trucking Missile Set, both riding high on the popularity of their respective TV series.
He-Man and the Masters of Deregulating Children's Television (1984)
Meanwhile, other toy companies were also busy in the courts, but they weren't going at each others throats. They were coming for the hearts and minds of young children across America!
In 1984 Ronald Regan was President of the United States. Known for his strong policies towards deregulation, the Reagan Administration made life much easier for industry by softening up various pesky government bodies such as the EPA, and FCC.
Prior to 1984, the FCC had strict rules that limited the amount of commercial time that could be aired during children's programming. This helped to limit exposure to excessive commercialism and prevented children from being strongly influenced by advertisers, and lured in by instant gratification.
But in 1984 the toy industry came to the rescue of 80's children (that's me) and "lobbied"* the Reagan administration to deregulate children's TV programming, allowing broadcasters to air more (much more!) commercials during children's programming, and in general to create their own TV shows promoting their wares, and beam it straight into the minds of us 80s kids. Cowabunga dude!
Some would say that cartoons of this era were no more than extended half-hour toy commercials. Surely it's not true!
- He-Man and the Masters of the Universe (1983)
Animated TV series created to promote the Mattel toy line. - G.I. Joe: A Real American Hero (1983)
Animated TV series created to promote the Hasbro toy line. - Transformers (1984)
Animated TV series created to promote the Hasbro toy line. - My Little Pony (1984)
Animated TV created to promote the Hasbro toy line. - Care Bears (1985)
Animated TV series created to promote the American Greetings toy line.
Of course, it's a complete coincidence that every single one of those was created smack-bang in time for the deregulation of children's TV programming. Total coincidence!
Also consider how these TV shows and 80s toys maintain a cult following, even 50 years after their release. Indoctrination at it's finest! Not that I'm complaining, these TV shows rocked!
*Lobbied as in "I'm just going to put down this paper bag stuffed with one hundred dollar bills, and turn around for a moment. Should by chance that bag no longer be there when I turn back around....."
Photo credit: Paper Nostalgia | eBay Stores
1985
The 1985 season was essentially a continuation of 1984, with few new releases and a continued focus on their new golden goose.
And despite the Lego lawsuit continuing, Tyco would soldier on with the marketing and selling of their new golden goose - and they held back no punches.
Central to Lego's lawsuit was Tyco's direct comparisons to their product, even going so far as putting Lego's brand on the product boxes when stating how similar they were.
"Tyco Super Blocks look and feel just like Lego, and they work together too. But they cost much less."
- Tyco Super Blocks marketing material
These direct comparisons would be woven into the marketing campaign for every product.
"The cost of Space Travel Just Came Down To Earth"
- Super Blocks Space Building Set
And the Super Blocks Castle Building Set.
"Now, building a Castle doesn't have to Cost a King's Ransom."
- Super Blocks Castle Building Set
The rest of the product range for 1985 matched the previous year almost identically, except for a few notable exceptions.
The Transformers license was added to coincide with the popular children's TV show.
The Transformers Electric Racing Set had standard looking road cars that would spring up to reveal a fairly janky looking transformer standing inside. Tyco apparently felt this was compelling enough to warrant a TV advertisement (attached). I'm not convinced, yet somehow still transfixed by all that 1980s Transformers imagery being piled onto my brain...Mmm must buy...
The Transformers Electric Train Battle Set may have been more compelling, with each train and caboose transforming into various space fighters and weapon platforms together with a large play mat and other set pieces.
Work to maintain the relevancy of Tyco's slot car technology continued, with the last few US1 sets still selling (and what incredible toys they were, check out our Tyco US1 Electric Trucking Buyers Guide here), while also introducing new technology such as the TR-X 4 car racing sets.
5. The Video Game Revolution
The late 70s and early 80s were a rapid acceleration towards electronic entertainment.
One of the most popular video game systems ever, the Atari 5200, was released in 1982. Toy makers received a clear signal that video entertainment was coming out of the arcade and into the family home - it was coming for their audience.
Yet there was a brief period where it seemed like the revolution had begun too fast, too quickly, that it almost extinguished itself by its own energy, like an explosion putting out a forest fire.
The 'video game recession' of 1983 occurred because customers had been flooded with poor quality titles, increasingly expensive systems, and more powerful and versatile personal computers were becoming available.
In 1984 the Commodore 64 was released, and it seemed like the final blow had been dealt - a family computer that could be used for office and business, for programming, and if required, even video games. It would have no problems making its way into homes with such a disguise, avoiding the negative stigma that video games had taken on following the video game crash a year earlier.
And so Nintendo needed a secret weapon, something that would market their new console as a fun toy, and not just another console.
That secret weapon was known as R.O.B.
Released in February 1986, the Nintendo Entertainment System with R.O.B, or the Robotic Operating Buddy, was a delightful gimmick that fascinated the public, ensuring retailers would stock their shelves full.
Yet R.O.B was only Nintendo's key to get their product in the door and past retailers skeptical after being left with loads of unsold overpriced consoles in the years prior. The real payload was the regular NES video game consoles which retailers had to stock if they wanted the R.O.B unit at all.
Customers would either purchase the full priced Deluxe Set with the robot toy, quickly get bored with it and purchase more games for the system, or they'd go straight for the standalone NES which was cheaper.
The NES was soon competing for the same spend on children's entertainment as the toy makers. And the NES was winning.
1986
Despite the coming juggernaut that would be the Toy-Grade RC vehicle, the first year for Tyco R/C almost didn't start at all.
In their 1986 catalog aimed at Toy Fair attendees and big market buyers, the front page was plain for a 3rd year in a row, without any product photographs on the front. Was it another year that Tyco would need to hide the fact that all it had to sell were slot cars, train sets, and their copy-cat Lego?
It may have seemed that way for anyone browsing the 1986 Tyco catalog at an industry toy fair.
Transformers was popular at the time, with the kids TV series launching a few years earlier to promote the Hasbro toy line, and by 1986 had become a major brand. Tyco wanted in on this action, and so launched their own competing brand, named 'Robo-Bloxx' (Roblox?)
A mixture of Transformers and Lego, it would take up the first key pages in the 1986 catalog and despite some clear effort by Tyco toy designers to make it work, it is possibly the worst looking toy that I've ever seen them create.
Complete with a near identical Transformers origin story ("from the ashes of an ancient empire..", "good and evil robots battle it out to dominate the planet"), the toys just look... weird. I'm not sure how impressed kids were with these sets at the time either, but I get a feeling it went down something like this...
Timmy: I'd like a Transformer for my birthday, Grandma!
Grandma: Here's that robot you wanted Timmy!
Timmy: ....
Following the dismal fail which was the Robo-Bloxx were some much better new Tyco Super Bloxx Sets.
Black Knights Castle Building Sets which came in two sizes, and was far more stylised than typical Lego sets at the time, with a darker and more omnious look to the builds and the characters within them.
Also available were the Super Blocks Alien Space Building Sets, highly generic and unexciting to be honest, though they did use half the pieces of the castle sets, so no doubt were considerably cheaper.
Rounding off the Super Blocks theme was the creatively named "Zippered Storage Bear", wow, they really hired some genius marketing teams for these ones! And the aptly named Deluxe Wagon and Building Set Combination.
Throw in an unusual 80s 'MASK' TV Show themed train set, and that would be it for 1986 yeah? Gosh no!
Sources:
- https://www.pgpedia.com/t/tyco-toys
- https://hotraincollector.com/tyco-trains-history/
- https://www.ancestry.com/1940-census/usa/New-Jersey/Norman-Tyler_4pvyvc
- https://tycotrain.tripod.com/tycotrains/id64.html
- http://www.tcawestern.org/tyco.htm
- http://www.fundinguniverse.com/company-histories/tyco-toys-inc-history
- https://www.ancestry.com/imageviewer/collections/2442/images/m-t0627-02343-01000?ssrc=&backlabel=Return&pId=134713790
- https://www.findagrave.com/memorial/154527604/john-n-tyler
- https://www.referenceforbusiness.com/history2/74/Tyco-Toys-Inc.html
- https://www.washingtonpost.com/archive/business/1987/09/01/lego-tyco-each-declare-victory-in-battle-of-the-bricks/0d3f7283-37d7-4687-8f3e-ec5cb14d173b/
- https://en.wikipedia.org/wiki/Lego_clone
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- https://shop.hcslots.com/tyco-440x2-high-performance-parts-c67/
- http://www.riggenho.com/patdennis2.htm