Seeking to diversify, defense contractor GloboTech Industries acquires the Heartland Toy Company. Faced with a tight deadline, Larry Benson uses GloboTech's X1000 microprocessor as the basis for the toys' programming, unaware of the danger it poses. Teenager Alan Abernathy takes a shipment of the toys at his family's toy store and discovers that one of them, Archer, is sentient. As the Commando Elite, led by Major Chip Hazard, pursue Alan and wreak havoc on the city, Alan teams up with Archer to stop them and save the day.
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