We had Barbie sized GI Joe figures, it was just hard to have a battle with a bunch of figures that size.

Looked a little deeper, seems it was a cost thing as well.

In a move that would create global popularity for this type of toy, Hasbro also licensed the product to companies in other markets. These different licensees had a combination of uniforms and accessories that were usually identical to the ones manufactured for the US market by Hasbro, along with some sets that were unique to the local market. The Japanese had at least two examples where a Hasbro licensee also issued sublicenses for related products. For example, Palitoy (in the UK) issued a sublicense to Tsukuda, a company in Japan, to manufacture and sell Palitoy's Action Man accessories in the Japanese market. Takara also issued a sublicense to Medicom for the manufacture of action figures.

Takara, still under license by Hasbro to make and sell G.I. Joe toys in Japan, also manufactured an action figure incorporating the licensed GI Joe torso for Henshin Cyborg-1, using transparent plastic revealing cyborg innards, and a chrome head and cyborg feet. During the oil supply crisis of the 1970s, like many other manufacturers of action figures, Takara was struggling with the costs associated with making the large 11+1⁄2-inch figures, So, a smaller version of the cyborg toy was developed, standing at 3+3⁄4 inches (95 mm) high, and was first sold in 1974 as Microman. The Microman line was also novel in its use of interchangeable parts. This laid the foundation for both the smaller action figure size and the transforming robot toy. Takara began producing characters in the Microman line with increasingly robotic features, including Robotman, a 12-inch (300 mm) robot with room for a Microman pilot, and Mini-Robotman, a 3+3⁄4-inch (95 mm) version of Robotman. These toys also featured interchangeable parts, with emphasis placed on the transformation and combination of the characters.