After the defense industry firm Globotech takes over a small toy company, Heartland Play Systems' CEO Gil Mars gives the green light to develop a new line of action figures, requesting an upgrade to more realistic figures. Mars wants toys that act like the ones in TV commercials. The results are fierce fighting figures, the Commando Elite, programmed to seek out and destroy the kindly alien-like Gorgonites. In an effort to make the toys as natural as possible, Benson inserts Globotech's most powerful military computer chips into the toys. Meanwhile, in quiet Winslow Corners, Ohio, toy-store owner Stuart Abernathy and his 15-year-old son Alan are stuck in a failing business, so when Heartland truckdriver Joe stops by with the Commando and Gorgonite toys, Alan is convinced they will be hot sellers. With blistering blows to their blister packs, the Commandos burst out, receive orders from their leader Chip Hazard and ready for an all-out assault on the Gorgonites. When the Gorgonite leader Archer begins communicating with Alan, it causes the Commandos to perceive humans as another enemy, simply by their association with the "Gorgonite scum," and an attack on the Abernathy house begins.