Ok ok ok, I was a few years off guessing the years, I guessed 1992 and 1993, but hey, what can I say I am impressed they made this in 1989.
Puppetmaster I have seen a couple of times. I thought it had at least one known actor, I struggle to remember who I thought was in this movie, but no one is in it, spoiler alert. The opening film to this series is also like, completely made to have sequels? Both in the way that is doesn't explain anything but also in the way that it leaves the puppets and company intact.
"Completely unexplained" is an odd direction to have a living puppet movie go in. It does not work. Basically old guy Toulon is the puppetmaster and pupper maker, and he has an unknown amount of unexplained living puppets. They're all minimally malevolent, moreso leaning towards being actively violent. They follow the twisted will of their strange maker, and the movie follows that.
It's also very slow and has barely any puppets in it until the end. So, it kinda sucks. Mostly it is bad actors saying dull lines in overdone cartoonish sets and costumes. When the puppets are on screen its an obvious highlight, and the kills are fun and imaginative. But its like a 1.5 out of 5.
Puppetmaster II is obviously done at a higher budget, with the knowledge your audience wants the puppets in it more. So it answers the call and has more deaths, more effects, more puppets, and more passion.
The plot is basically Toulon comes back deformed and wrapped in gauze, and he reconnects with his puppets while we get some flashbacks and he works towards...some goal or something. It's a who cares excuse for fun, and it is. I give it a solid 3.5 stars.