The pixar touch

Initially, working at Lucasfilm seemed like a golden opportunity for Ed Catmull and his team to dive into creating a fully computer-animated film. However, upon joining in the fall of 1979, they discovered George Lucas had more modest ambitions. Lucas envisioned his Computer Division focusing on digital film compositing, digital audio mixing, and digital film editing—areas Catmull and his team were unfamiliar with. Moreover, the division didn't even possess a computer at the time.

Despite these challenges, staffing was not an issue, thanks to a flood of resumes. Catmull appointed project heads: Alvy Smith from NYIT for digital compositing, David DiFrancesco for developing a digital film scanner and printer, Andy Moorer from Stanford for the digital audio project, and Ralph Guggenheim, also from NYIT, for editing.

Following directives from Lucasfilm executives, Ed Catmull and Alvy Ray Smith, along with their team, were tasked with finding a buyer for their computer graphics group. The executives believed the group's specialized computer, capable of enhancing movie production with its scanning and special effects integration capabilities, was a valuable asset. This computer, known as the Pixar Image Computer, was seen as a potential product for mass production aimed at industries dealing with high-resolution imagery. Despite their lack of experience in the computer hardware market, Catmull, Smith, and their team saw this as an opportunity to keep their group intact. However, their efforts to sell the division for $15 million to over twenty venture capitalists and investment banks were unsuccessful, with only Siemens showing fleeting interest for its potential use in enhancing CAT scanner images.

In their careers' early stages, Catmull and Smith were tasked with overseeing Pixar's financial health. Initially, Steve Jobs allowed them autonomy as he focused on NeXT, his new venture. Despite challenges, Pixar began selling its Image Computers to entities requiring high-resolution images, but the product faced hurdles due to its high price, lack of user interface, and absence of software, necessitating custom programming by users. Jobs remained optimistic, expanding sales efforts across the U.S. Meanwhile, John Lasseter, with minimal help, created the animated short "Luxo Jr.," showcasing emotional storytelling through inanimate objects, a novel concept that was well-received and demonstrated the potential of computer animation.

Despite the excitement Ed Catmull and John Lasseter felt about creating a feature-length movie with Disney, the terms of their contract were less than reassuring, indicating that Disney could withdraw from the agreement at any time. As a precaution, Pixar continued producing commercials, essentially operating as if the movie deal with Disney didn't exist. This was a backup plan to ensure the company's survival. The script for what would become Toy Story received approval from Jeffrey Katzenberg on January 19, 1993. Tom Hanks was signed on to voice Woody, and although Billy Crystal was initially approached to voice Buzz Lightyear, he declined, and the role went to Tim Allen. Following these casting decisions, Pixar began assembling story reels to outline the film's flow, which were presented to Katzenberg on November 19, 1993.

He immediately halted production for a script rewrite, which lasted until April 1994. Once Katzenberg approved the revised script, Pixar ramped up its production team significantly to work on the first fully computer-animated feature film. This involved a complex production line where every frame of the movie passed through multiple departments, from art and layout to animation, shading, lighting, and rendering, with each of the 110,000 frames taking extensive computer time to complete. Meanwhile, Steve Jobs, who had invested $50 million in Pixar, faced financial challenges as Disney increased the movie's budget, requiring Jobs to secure additional funding to cover cost overruns.

While Pixar was ironing out various peripheral issues, the team was also fine-tuning Toy Story for its scheduled release on November 22, 1995. A test audience screening indicated the need for adjustments at the beginning and end of the film. The feedback was positive, though not overwhelmingly so. Disney's marketing prowess was in full swing, with Toy Story trailers included on seven million Cinderella video copies, a Disney Channel special on the making of the film, and a daily parade at Disney-MGM Studios. With major toy companies having declined to license Toy Story characters, a small Toronto-based firm took the risk of producing Woody and Buzz Lightyear toys. Disney secured $145 million in promotional funds, with contributions from Burger King, Nestle, and others, including PepsiCo and Coca-Cola.

The film premiered on November 19, 1995, and opened to the public on 2,400 screens. Critics praised its wit and characters, with some calling it the year's most inventive comedy. Pixar, once on the brink of sale, saw Toy Story become a box-office hit, earning $64.7 million in twelve days. Steve Jobs timed Pixar's IPO perfectly for November 29, a week after Toy Story's release, capitalizing on the film's buzz. The IPO was a success, with shares soaring and Jobs's stake in Pixar valued at over $1 billion. Toy Story became 1995's highest-grossing film, earning $192 million domestically and $357 million globally. It received an Academy Award nomination for best original screenplay, and John Lasseter received a special achievement award. The film's success also led to insights and changes in the relationship between Pixar and Disney, with Pixar gaining a more equal partnership and recognition.

Pixar, after establishing a successful formula, embarked on a journey to enrich the animated movie landscape with a series of hits. Starting with "Toy Story 2" in 1999, which garnered impressive box office earnings, the studio continued its streak with "Monsters, Inc.," "Finding Nemo," "The Incredibles," "Cars," and "Ratatouille." Each new release not only showcased technological advancements in graphic animation but also underscored Pixar's knack for blending technical prowess with storytelling finesse. This period marked a significant shift in the animation industry, prompting Disney to pivot towards 3-D animation, albeit with initial setbacks like the underperforming "Dinosaurs" and the shelved "Wild Life." The tension between Disney and Pixar escalated when Disney threatened to produce sequels to Pixar's hits without their involvement, a move that Steve Jobs countered by proposing a new deal that Disney was unlikely to accept, setting the stage for a corporate showdown.