Pixar's True Story: Origins of the Animation Giant

The history of Pixar is a tale of technological innovation and creative risk-taking. It started within the Lucasfilm Computer Division, led by Ed Catmull and Alvy Ray Smith. Their primary goal was to build the first computer capable of producing a feature-length film.

In 1986, Steve Jobs bought the division for $10 million, creating Pixar as an independent entity. While the company struggled financially with hardware sales, it found success in short films and commercials. This creative work laid the groundwork for a historic deal with Disney in the early 1990s.

The release of Toy Story in 1995 revolutionized the animation industry. The success led to a deeper relationship with Disney, culminating in the $7.4 billion acquisition in 2006. This move secured Pixar's legacy and integrated it into one of the world's largest entertainment companies.

The origins of Pixar can be traced back to the Lucasfilm Computer Division in the early 1980s. This group was tasked with developing advanced graphics hardware and software to revolutionize visual effects. The team included pioneers such as Ed Catmull, Alvy Ray Smith, and Loren Carpenter.

One of the division's first major achievements was the Genesis Effect, a digital sequence used in Star Trek II: The Wrath of Khan. This demonstrated the potential of computer-generated imagery (CGI) in filmmaking. The group also developed the PIXAR Image Computer, a machine designed to process high-resolution digital images.

Despite these technical successes, George Lucas sought to sell the division due to financial constraints following the release of Return of the Jedi. The team needed a new owner who could sustain their vision of creating the first computer-animated feature film.

In 1986, Steve Jobs invested $10 million to purchase the Lucasfilm Computer Division, establishing it as an independent company named Pixar. Jobs served as the majority shareholder and chairman, bringing business acumen and financial backing to the technical team. The company was headquartered in Emeryville, California.

During this period, Pixar focused heavily on selling hardware. The Pixar Image Computer was marketed to government agencies, medical facilities, and entertainment studios. However, the hardware business was difficult, and the company faced significant financial challenges. To generate revenue, the creative team produced television commercials for brands like Lipton and Life Savers.

The company also continued to produce short films. Tin Toy (1988) and Knick Knack (1989) explored storytelling techniques that would later be essential for feature films. These shorts won Academy Awards, proving that the studio had the creative talent necessary for a larger project.

The turning point for Pixar arrived in 1991 when the company signed a three-picture deal with Disney. This agreement stipulated that Pixar would produce a computer-animated feature film, while Disney would finance the production and retain distribution rights. The resulting film was Toy Story, released in 1995.

Toy Story was a massive critical and commercial success. It proved that computer animation could sustain a full-length narrative and captivate global audiences. The film's protagonist, Woody, and the space ranger Buzz Lightyear became cultural icons.

The success of the first film led to a long-term relationship. Pixar produced a string of hits including A Bug's Life, Monsters, Inc., and Finding Nemo. As part of a renegotiated deal in 2006, Disney acquired Pixar for $7.4 billion. Ed Catmull became the president of the combined animation studios, ensuring the preservation of Pixar's unique culture.