Background
Pixar, purchased in 1986 by entrepreneur and former Apple Computer head Steve Jobs, received many accolades for films produced by its small animation division, headed by animator John Lasseter. Lasseter's primary role, as defended to Jobs by company founders Edwin Catmull and Alvy Ray Smith, was to produce short films to promote the company's own Pixar Image Computers. The department was never meant to generate any revenue as far as Jobs was concerned, but after the release of two shorts, Luxo Jr. (1986) and Red's Dream (1987), some of the engineers working on the company's products wondered whether it made sense to keep the animation group going at all. Pixar was losing money every year and Jobs was supporting the cash-strapped company through a line of credit with his personal guarantee.
The engineers felt they were working hard to make money for Pixar while Lasseter's group was only spending it. Their passion was for building computers and software, not entertainment. Eventually, they discerned, to their chagrin, the reason why the company was supporting the division: the real priority of Catmull and Smith was to make films. The engineers were not alone in wondering about the value of Lasseter's short films. On repeated occasions in the late 1980s, Catmull barely dissuaded Jobs from shutting down the animation division due to financial constraints. At this same time, Jobs was clashing with Alvy Ray Smith, while would eventually lead to his resignation from Pixar after a heated argument during a meeting. Things were by no means well at the company and Lasseter and his team of animators knew this, and were afraid to ask for money to finance another short, which they storyboarded as Tin Toy.
Read more about this topic: Tin Toy
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