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Man, that Black Series Rancor was sure a success, wasn't it, shame about the failure of that GI Joe Skystriker.
Right? But go on, tell me that it's just because the Rancor flubbed its delivery or that it was because it cost more. Even though Star Wars is far more well known and loved by far than GI Joe and the Rancor had a lower threshold to get to be made.
1:12 is only good for one thing: Figures of human-size characters. Anything bigger than that eats into precious space far faster. Anything smaller and you're already in 1/18 territory anyways, why bother?
Also, basic math tells you that, per volume, 1/18 scale figures, playsets, vehicles, etc only take 8/27 the space. You can create a far, far more dynamic scene with less space taken up.