Hero Factory was created by Akiyama Makuro. It's main purpose is to create Heroes, the police force of the galaxy.
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Hero Factory's history is a little sketchy up until the New Stellac City Mission. That mission was when Von Ness went rougue and Preston Stormer defeated the New Stellac City Drone.
Then comes another gap in the Factory's history. Nothing much happens until Rise Of The Rookies, a movie about the return of Von Ness, now the evil Von Nebula.
Then stuff starts happening. A little while after Rise Of The Rookies, Ordeal Of Fire takes place. It is followed by Savage Planet.
The current storyline is Breakout, in which Von Nebula organizes a massive breakout from Villian Storage.
There are rumors that the fall of 2012 storyline will be called The Doom Box, will feature the characters that were released as Breakout sets but did not appear in the Breakout movie.