Will Marvel characters be part of the next toy-related takeover? Will Sony's Godzilla live up to its own hype? Is the notoriously licensing-shy Lego jumping into alliances with the next Star Wars movie, or Nickelodeon? Are the Teletubbies too freakish for their own good? And will little girls swallow up Hasbro's McDonaldland Happy Meal Girl?

Those were some of the hot questions circulating at last week's American International Toy Fair in New York, the annual schlepfest of plastic dolls, fuzzy plush characters, electronic gadgets and kiddie paraphernalia that serves as the official kickoff to the $22.5 billion toy industry's search for the next toy box king behind Beanie Babies, Tamagotchi and Elmo.

The buzz had Marvel talks heating up after one of its top execs was spied chatting with kid-TV magnate Haim Saban--the two already have a production pact--though the likeliest scenario had Fox's Rupert Murdoch cementing a deal with Toy Biz to scoop up beleaguered Marvel's treasure trove of actioners including Spider-Man, the X-Men, Green Lantern and Silver Surfer. Marvel is one of toyland's few remaining independents now that Hasbro has announced its $335 million acquisition of Tiger Electronics. That deal, which will give Tiger greater distribution and Hasbro a new entry in the hot electronic gaming category, came as little surprise to observers who watched the heated bidding for Lucasfilm's Star Wars property. Hasbro emerged from those negotiations wresting from Tiger the license to create electronic toys, but had little expertise in the field.

The next installment of the Star Wars juggernaut is not due until May 1999, yet Hasbro is making good on its investment by bringing 100 new action figure and vehicle SKUs to market this year, juiced by a fourth-quarter frequency promotion that offers collectors a chance of owning a character from the new film months before they hit store shelves. New combatants aiming for the $1 billion action figure market include Hasbro's-own line based on DreamWorks'Small Soldiers taking on Trendmasters' monster milieu from Sony's Godzilla and McFarlane's X-Files line from the upcoming Fox thriller, a facing a new assault from Bandai's never-say-die Power Rangers in Space and a new TV-linked sibling series, Mystic Knights of Tir Na Nog, described as a Rangers-go-Celtic formula.

The buzz about Soldiers centered on whether Hasbro's late production schedule would allow delivery of enough product by the film's July 10 release date. With Trendmasters' Godzilla showroom closed to all but buyers with security badges--watched over by armed guards (with toy stun guns) no less--the top question was whether the monsters' much-as-you'd-expect look would create a storm at retail to live up to the movie hype. Godzilla, planned as a trilogy, will use digital effects to create 95% of the main protagonist.

Mattel toys linked to Nickelodeon's Rugrats movie and Disney's fall release, A Bug's Life, stand to give the industry leader strong entries for younger audiences, with some expecting the latter to become this year's answer to Toy Story. Those toys will make up for a smaller line based on Disney's animated Mulan, which is being marketed to young girls.

Lego will wearly double its '98 marketing efforts and reach out to adults with a strong fourth-quarter campaign to "re-establish what Lego stands for," said Rob Ellis, vp-marketing. The program will include TV and print ads via Ammirati Puris Lintas, N.Y., and a 25th anniversary "Imagination Celebration" featuring a semitruck with building toys hitting high-traffic family destinations in 25 cities. Lego, which extends further into computer-enhanced game play with its Mindstorms project, has set a goal to become the "top toy brand" by 2005.

That mission could include product placement for Lego in movies and TV, and even property-themed merchandise, a first for the company. Those scenarios gained steam last week as Lucas-film licensing czar Howard Roffman emerged from a meeting with Lego execs; Nickelodeon's Maureen Taxter visited shortly thereafter. Asked about any entertainment alliances, Ellis remained mum, noting only, "It's not out of the question."

It's creepy, it's incomprehensible, and kids just may eat it up. The industry certainly has. Teletubbies, a TV property that has swept its native U.K., launches on PBS in April, followed closely by a small toy line of plush, talking dolls and molded figures. The property, with its brightly-colored jibberish-speaking alien-like characters, was the talk of Toy Fair, though many said they think the hype is artificially strong at this point. "Consumers don't have the slightest idea what it is," said Woody Browne of licensing consultancy Building Q.

Then again, will little girls who already beg their parents to visit the nation's top fast feeder warm to the idea of Hasbro's McDonaldland Happy Meal Girl? The baby doll, at about $23 retail, targets girls 3 to 6 and comes with her own Happy Meal box with cheeseburger, fries and drink and makes "slurp, bubble and burp" noises when she drinks. McD Girl will get a $3.5 million media push and give Hasbro its own promotion vehicle, as it will tuck tiny versions of its own toys inside the doll's Happy Meal sacks and tie in with the real home of the arches for a March coupon offer on 40 million trayliners.

"We went for awareness and ubiquity," said a Hasbro exec, who acknowledged the possible backlash against a seemingly overcommercialized product.

Under the heading of where there's a void, there's an opportunity, several manufacturers are trying to fill the large gap that used to be occupied by Mattel's Polly Pocket and Galoob's Skydancers mini-dolls.

Playmates launches Fashion Annie, billed as the world's smallest fashion doll, standing a diminutive 1 3/4 inches tall, with national Nickelodeon media buys this fall. "The small-doll market needs some revitalization," said Gina Beebe, Playmates' svp-marketing of girls toys.

Hasbro agrees, and plans a $1.5 million relaunch of My Little Pony, a hugely popular line that first bowed in 1983, spawned a movie and TV series, and sold 100 million units during its 10-year run. Though awareness of the property is widespread, Hasbro has inked a March and April promo with McDonald's that will put 25 million Little Pony and Beast Wars premiums in Happy Meals. Separately, a collectible program will be driven by bursts on 4 million packages.

"Not many classic brands for girls can come back," said Peter Staddon, Hasbro's general manager, girls toys and creative play. "We analyzed the marketplace and realized there has been a huge gap, and there's potential for huge global growth."

Trendmasters expands on its Starcastles, which has become its biggest-selling line since its '95 intro, with new products; and Galoob intros a new line called the Backpack Club that houses mini dolls in wearable backpacks.

With Giga Pets, Digimon and Nano Pals spawning mutant versions, the stage has been set for furry and cuddly exteriors wrapped around high-tech guts. Microsoft's ActiMates' Barney adds two characters this year, while Tiger tips its hat to Microsoft with Furby, a Gizmo-like animatronic creature so life-like it can catch a cold from one of its brethren. Mattel's forthcoming Interactive Pooh can "live" away from the computer, and Equity's Talking Babe uses the voice from the popular film to say hundreds of phrases to its kid.

Though high-tech seems to be the order of the day, some decidedly simple toys can still bring home the bacon, as Milton Bradley and Parker Bros. found last season by grouping several classic adult-targeted board games under one banner, Get Together Games. An ad campaign with spokesperson Jane Leeves boosted sales 10% in a category that had been declining for years. The company, continuing that strategy of grouping games together, puts a $5 million-plus ad push behind a line of all-family games under the tagline, Family Game Night. The third-and fourth-quarter campaign, via Griffin Bacal, N.Y., will span TV, print, radio and outdoor. Individual brand ads will continue for Yahtzee, Monopoly, Scrabble, Life and others in the group. On-pack bursts and in-store signage also support. Execs are trying to make deals for snacks, soda, candy and fast feeders, possibly pizza, for tie-ins, with a coupon book and premiums planned as value-added features. "We want to bring in partners to round out the experience," said Glenn Kilbride, vp-U.S. marketing of Hasbro's games and puzzles.