What was Toy Story 2 originally planned to be released as?

Toy Story 2 was originally planned as a direct-to-video sequel rather than a theatrical feature.

Disney initially pursued the project on a smaller scale, following the company’s successful strategy of producing inexpensive home-video sequels to popular animated films. Pixar’s main staff was busy making A Bug’s Life, so the early Toy Story 2 team worked in a separate building with a limited production setup. The project was expected to run about 60 minutes.

That plan changed after Disney executives viewed the story reels and were impressed by the quality of the work. The economics also favored theaters: Pixar’s highly paid staff made a direct-to-video production less attractive financially. Disney and Pixar therefore upgraded the sequel to a theatrical release, even though the original schedule had been compressed.

The change created enormous pressure. John Lasseter and the story team substantially redeveloped the film, and much of the production had to be completed in roughly nine months. A later data-loss accident erased most of the working files, but a home backup helped rescue the project. Toy Story 2 ultimately opened theatrically on November 24, 1999.