Working on a direct-to-video release was supposed to be a cost-cutting method of film production one that accepted a lower degree of quality in return for higher back end profits but Pixar employees struggled to adapt to this model, refusing to compromise their expectations of quality. Production immediately gets off to a rocky start.

But with the direct-to-video sequel model introduced a few years earlier proving particularly lucrative ( Return of Jafar reportedly made over $100 million dollars profit), this path seemed a natural fit for Toy Story 2. Disney’s track record with sequels at the time was spotty at best – The Rescuers Down Under was their only theatrically released sequel and it was a major flop, and the “happily ever after” nature of a lot of their films combined with their tight image control led them away from possibly diluting the brand with mediocre second installments. Promising young animator Ash Brennon is hired to direct, and the film is officially announced in March 1997 as a direct to video release. Talk of a sequel to Toy Story began immediately after it proved to be such a tremendous success, becoming the highest grossing film of 1995, and Lasseter, having already helmed the first movie and starting work on A Bug’s Life, decided it would be a good opportunity to foster new talent at Pixar. The company is nine months away from releasing its next film Toy Story 2, the highly anticipated sequel to their critically acclaimed debut feature, and in the words of director John Lasseter: it’s a “disaster”.

It’s January 1999, and Pixar is in a crisis.

Toy story 2 live action