It's definitely not another version of Toys. It has more roots in classic 50s horror than it did in movies like Toys. The only things they really share is that they both have toys (though only one toy in Toys was alive) and they both have an anti-war theme. The plots and approaches are very different.
The plot is this:
Researchers are creating educational toys that can "learn." THe toys are action figures that look like monsters.
Then their funding is cut when the company is bought by a military research coorporation expanding into toys: and they're ordered to make military toys, so the monsters become the "bad guys" to the soldier actioin figures, which they try to still market using AI they steal from the military R&D departments
So the new soldier action figures come to life with the AI the military developed, making them want to search and destroy, while the "monsters" retain their educational preogatives (they're the good guys of the film).
The rest just follows from that.
I though it was reasonably clever, though not exceedingly well done. It was fun, just not great.