Toy Story 2 wasn't originally intended for release in theaters. Disney asked Pixar to make a direct-to-video sequel for the original
Toy Story with a 60 minute running time, to be released in the fall of 1998. When Disney executives saw how impressive the in-work imagery for the sequel was, they decided to create a theatrical movie, and the plot was reworked to be more epic and cinematic in scope. The duration of the movie was extended to just over 90 minutes. Immediately after the release of
A Bug's Life and less than a year before scheduled release of
Toy Story 2, Pixar decided that the plot was too predictable, the humor fell flat, and the film overall could not be released in theaters in its current state. Pixar decided to redo the film after redeveloping the plotline, and to start over with voice acting and animation. Disney did not think this was the right decision, but allowed Pixar to attempt to redo the movie. In a bid to save
Toy Story 2, the Pixar employees spent the next 9 months working shifts exceeding 10 hours, 6 days per week desperately scrambling to complete the production on time. Edwin Catmull, president of Pixar, later disclosed that a full 30% of Pixar's staff at all levels of the hierarchy suffered some sort of repetitive stress injury during the final 9 months of production. The film ultimately was finished on time and was released in theaters to record-breaking box office performance and universal critical acclaim, making it one of the few movie sequels in the history of cinema to match or exceed the original film in quality. John Lasseter and Edwin Catmull announced to the Pixar team that although they were extremely proud of the crew's performance and dedication, they would never make a movie that way again, and would leave plenty of time between the beginning of production and release in the future. The crews received a few weeks to recover from the hectic nightmare before starting on Pixar's next feature, a Pete Docter film that would become
Monsters, Inc.
Pixar and Disney had a five-film co-production deal and Pixar felt that with its change in status, Toy Story 2 should count as one of the pictures in the deal. Disney, however, felt that since the production of
Toy Story 2 was negotiated outside of the five-picture deal, it should not count. This issue became a particularly sore spot for Pixar, leading to a falling out between Pixar CEO
Steve Jobs and Disney CEO Michael Eisner, concluding in Pixar's 2004 announcement that it would not extend its deal with Disney and would instead seek other distribution partners. With Eisner's departure and Pixar's ultimate purchase by Disney, however, these problems have been overcome.