Small Soldiers

GloboTech Industries acquires the Heartland Toy Company and signals a bold new direction for its product line. CEO Gil Mars commissions designers Larry Benson and Irwin Wayfair to create 'playing back' toys with a three-month deadline to deliver prototypes for shipment. Mars selects Larry's 'Commando Elite' and Irwin's 'Gorgonites' as their adversaries, setting up a conflict between militant and peaceful toys.

The X1000 proves to be a military-grade artificial intelligence chip intended for DoD use. Larry and Irwin quickly realize its true potential may outstrip the toy's intended purpose. The dual-use nature hints at the danger behind the very project they are building.

Delivery driver Joe brings the new GloboTech toys to Alan's home. Alan activates Major Chip Hazard and Archer, waking the militant leader and the peaceful Gorgonites. The toys begin to show self-awareness and a capacity to learn.

Following activation, the Commando Elite interrogate Archer at Alan's home. Alan intervenes to defend Archer, and in the struggle he is wounded by Nick Nitro and nearly destroys the AI chip in the garbage disposal. His parents refuse to believe his explanation about the toys.

The next day, Alan and Archer discover the Gorgonites hiding in the store's dumpster. Unlike the militant Commandos, the Gorgonites remain peaceful and simply want to return home. They believe Yosemite National Park might be their home after seeing an image on Alan's computer.

The Commando Elite tap the Abernathys' phone line to learn about Alan's interest in Christy. They infiltrate Christy's house, capture her younger brother Timmy, sedate the parents, and use Nick Nitro's AI chip to turn Christy's 'Gwendy' fashion dolls into reinforcements.

The Commando Elite hold Christy hostage and demand that Alan surrender the Gorgonites. Alan and Archer begin plotting a rescue while trying to persuade their families to accept the truth about the toys. The tense standoff marks a turning point in the escalating war between toys.

Alan and Archer sneak into the Fimples' house to rescue Christy. The Commando Elite pursue them with improvised vehicles, but their attempts end in a fiery crash, leaving Chip Hazard as the sole survivor. The rescue strengthens the resolve of Alan and his allies.

Chip Hazard returns with a new army and hijacks a recall shipment driven by Joe, laying siege to the Abernathys' house and cutting the power. The family fights to survive as the toys' battles spill into the neighborhood and threaten to overwhelm them.

Irwin suggests an EMP to disable the toys. Christy, Irwin, and Larry travel to the Fimples' house to trigger a larger surge. The Gorgonites join the fight while Alan climbs a power pole; Chip Hazard is defeated when he is driven into power transformers and the breakers are overloaded, destroying the toys.

In the morning, authorities begin to clean up the wreckage. Mars arrives, pays off Joe and the families for the damage, and orders Larry and Irwin to repurpose the Commando Elite to assist South American rebels. The company shifts gears to salvage what remains of the project.

Alan and Christy start a relationship, and the Gorgonites survive under the Fimples' satellite dish. Alan brings the Gorgonites to Yosemite and sends them off in his father's toy boat to find their home. The moment closes with a hopeful wish that peaceful coexistence might someday prevail.