This interview with Roger Sweet, creator of the He-Man franchise, recounts the story of the birth of the Masters of the Universe:
[Mattel president] Ray Wagner had passed on Star Wars because the license property apparently required $750,000 upfront. At the time, for an unproven property, that was a highly exorbitant sum. So Wagner had Mattel’s Prelimary Design Department – of which I was a member – Come up with viable male action figure concepts. I had been real impressed by Frank Frazetta paintings and I [submitted an idea] that I called monster fantasy. But it was actually a barbarian fantasy…
When I first saw the [first year of the] Masters of the Universe line all together I thought it was somewhat weak because it was low-tech and it was conservative. My concept of MOTU was that it combined everything- low-tech, high-tech, past, present and future. I wanted MOTU to be as expansive as possible and do anything that was appealing. I would love to see a G.I. Joe segment in MOTU. I wouldn’t mind seeing a character like [Child’s Play] Chucky in it.