Quoted By:
Here's some random Joe trivia. The whole reason GI Joe was canceled after 1994 had nothing to do with sales of the line. In fact 1993 was the second hottest year of the line, with 1986 being the only year to sell better.
The primary reason it was canceled after 1994 was because the newly acquired Kenner team had been knocking it out of the park with Jurassic Park and Batman figures. Hasbro at this time was trying to compete with new and popular toys that were suddenly springing up like crazy in the 90's like TMNT, Power Rangers, and Spawn.
In an effort to compete Hasbro handed of the line to Kenner to take a crack at it, since they were currently the IT design team at Hasbro. Kenner however did what Kenner liked to do during this period, by making large 5 poa action figures out of the property, which turned off fans when GI Joe Extreme debuted, since they weren't compatible with existing figures. The line itself was prematurely canceled before many of the villains or other Joes were released, including classic characters like Duke, who was slated to be released a few waves into the line once core characters were made.