In 1923, two brothers founded the Hassenfeld Brothers company. Over the next two decades, the company expanded to produce pencil cases and school supplies.
In the 1940s, Hassenfeld Brothers produced doctor and nurse kits, its first toys. Hassenfeld Brothers first toy hit was Mr. Potato Head. The toy was a success. In 1964, Hassenfeld Brothers produced the G.I. Joe toy, which they termed an "action figure" in order to market the toy to boys who wouldn't want to play with "dolls". The company shortened its name to Hasbro Industries in 1968.
In 1983, Hasbro produced another successful toy franchise, My Little Pony. The company acquired the Milton Bradley Company in 1984, bringing The Game of Life, Candy Land, Twister, Chutes and Ladders and Yahtzee into the Hasbro fold, and found continued success in 1984 with the release of the first Transformers toys.
In 1991, Hasbro purchased the Tonka company; through this purchase, Hasbro also obtained the Nerf brand.