Mego's 1979 Star Trek toy launch failed to capture the market as intended. Due to high production costs and a disappointing film,the company filed for bankruptcy in 1982.
The Kenner Effect and the 1977 Star Wars Gold Rush
Mego was a dominant force in the 1970s toy industry, particularly known for its leadership in science fiction properties. However, the landscape of toy manufacturing shifted drmaatically following the release of George Lucas's Star Wars in 1977. While many manufacturers dismissed the potential of film-based licensing, Kenner Toys took a massive gamble that paid off when the film shattered box office records.
As the report indicates, the success of Kenner's action figures created a frenzy that forced other companies to scout for their own sci-fi licensing deals.. This era of rapid action-oriented toys set a new standard for the industry, one that Mego attempted to meet with its own high-profile science fiction investments.
The "pajama" uniforms and the 1979 Star Trek product glut
Mego's 1979 Star Trek line was a rushed attempt to capitalize on the new film adaptation. The company introduced a wide array of products to ensure market coverage, including 12 variants of 3.75-inch figrues, six 12-inch dolls, and three vehicle model kits. Despite the variety, the product line struggled to find an audience due to aesthetic and structural issues.
The design of the figures was a significant point of contention among consumers. According to the source, the Starfleet uniforms were criticized for being drab, leading many fans to dismiss the outfits as "pajamas." This lack of visual appeal, combined with high production costs, meant that many items remained unsold even after the company applied deep discounts.
A $40 million loss and Marty Abrams' failed gamble
Marty Abrams and the Mego leadership team faced a massive financial deficit following the Star Trek venture. The 1979 film, which was adapted from a television script, was criticized for being slow-paced and dialogue-heavy—a sharp contrast to the high-action style of Star Wars that consumers had come to expect. This poor reception directly impacted the profitability of Mego's investment.
The financial consequences were devastating for the organization. The report states that Mego lost roughly $40 million in production costs alone. This massive deficit, alongside other unsuccessful toy lines, ultimately led to Mego filing for bankruptcy in 1982, marking the end of its era as a toy industry leader.
Was the 1979 production rush avoidable?
Several specific details regarding Mego's downfall remain unverified by the current reporting. While the source claims Mego "rushed production," it is unclear if the company lacked the capacity to meet demand or if they intentionally sacrificed quality to hit the film's release window. furthermore, the report does not specify if the $40 million loss was strictly tied to the Star Trek line or if it was a cumulative figure including other failed ventures.
There is also the question of whether Mego's design team misread the evolving tastes of the 1979 consumer. It remains unknown if the "pajama" uniform criticism was a widespread sentiment among children or a specific grievance held by the collector community.
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