PixarAnimation Studios, known simply as Pixar (/ˈpɪksɑːr/), is an American animation studio based in Emeryville, California, known for its critically and commercially successful computer-animated feature films. Since 2006, Pixar has been a subsidiary of Walt Disney Studios, a division of Disney Entertainment, a segment of the Walt Disney Company.
Pixar started in 1979 as part of the Lucasfilm computer division. It was known as the Graphics Group before its spin-off as a corporation in 1986, with funding from Apple co-founder Steve Jobs who became its majority shareholder.[2] Disney announced its acquisition of Pixar in January 2006, and completed it in May 2006.[4][5][6] Pixar is best known for its feature films, technologically powered by RenderMan, the company's own implementation of the industry-standard RenderMan Interface Specification image-rendering API. The studio's mascot is Luxo Jr., a desk lamp from the studio's 1986 short film of the same name.
In February 2009, Pixar executives John Lasseter, Brad Bird, Pete Docter, Andrew Stanton, and Lee Unkrich were presented with the Golden Lion award for Lifetime Achievement by the Venice Film Festival. The physical award was ceremoniously handed to Lucasfilm's founder, George Lucas.
Pixar got its start in 1974, when New York Institute of Technology's (NYIT) founder, Alexander Schure, who was also the owner of a traditional animation studio, established the Computer Graphics Lab (CGL) and recruited computer scientists who shared his ambitions about creating the world's first computer-animated film.[citation needed] Edwin Catmull and Malcolm Blanchard were the first to be hired and were soon joined by Alvy Ray Smith and David DiFrancesco some months later, which were the four original members of the Computer Graphics Lab, located in a converted two-story garage acquired from the former Vanderbilt-Whitney estate.[8][9] Schure invested significant funds into the computer graphics lab, approximately $15 million, providing the resources the group needed but contributing to NYIT's financial difficulties.[10] Eventually, the group realized they needed to work in a real film studio to reach their goal. Francis Ford Coppola then invited Smith to his house for a three-day media conference, where Coppola and George Lucas shared their visions for the future of digital moviemaking.[11]
John Lasseter was hired to the Lucasfilm team for a week in late 1983 with the title "interface designer"; he animated the short film The Adventures of Andr & Wally B.[17] In the next few years, a designer suggested naming a new digital compositing computer the "Picture Maker". Smith suggested that the laser-based device have a catchier name, and came up with "Pixer", which after a meeting was changed to "Pixar".[18] According to Michael Rubin, the author of Droidmaker: George Lucas and the Digital Revolution, Smith and three other employees came up with the name during a restaurant visit in 1981, but when interviewing them he got four different versions about the origin of the name.[19]
In 1982, the Pixar team began working on special-effects film sequences with Industrial Light & Magic. After years of research, and key milestones such as the Genesis Effect in Star Trek II: The Wrath of Khan and the Stained Glass Knight in Young Sherlock Holmes,[14] the group, which then numbered 40 individuals, was spun out as a corporation in February 1986 by Catmull and Smith. Among the 38 remaining employees were Malcolm Blanchard, David DiFrancesco, Ralph Guggenheim, and Bill Reeves, who had been part of the team since the days of NYIT. Tom Duff, also an NYIT member, would later join Pixar after its formation.[2] With Lucas's 1983 divorce, which coincided with the sudden dropoff in revenues from Star Wars licenses following the release of Return of the Jedi, they knew he would most likely sell the whole Graphics Group. Worried that the employees would be lost to them if that happened, which would prevent the creation of the first computer-animated movie, they concluded that the best way to keep the team together was to turn the group into an independent company. But Moore's Law also suggested that sufficient computing power for the first film was still some years away, and they needed to focus on a proper product until then. Eventually, they decided they should be a hardware company in the meantime, with their Pixar Image Computer as the core product, a system primarily sold to governmental, scientific, and medical markets.[2][10][20] They also used SGI computers.[21]
In 1983, Nolan Bushnell founded a new computer-guided animation studio called Kadabrascope as a subsidiary of his Chuck E. Cheese's Pizza Time Theatres company (PTT), which was founded in 1977. Only one major project was made out of the new studio, an animated Christmas special for NBC starring Chuck E. Cheese and other PTT mascots; known as "Chuck E. Cheese: The Christmas That Almost Wasn't". The animation movement would be made using tweening instead of traditional cel animation. After the video game crash of 1983, Bushnell started selling some subsidiaries of PTT to keep the business afloat. Sente Technologies (another division, was founded to have games distributed in PTT stores) was sold to Bally Games and Kadabrascope was sold to Lucasfilm. The Kadabrascope assets were combined with the Computer Division of Lucasfilm.[22] Coincidentally, one of Steve Jobs's first jobs was under Bushnell in 1973 as a technician at his other company Atari, which Bushnell sold to Warner Communications in 1976 to focus on PTT.[23] PTT would later go bankrupt in 1984 and be acquired by ShowBiz Pizza Place.[24]
In 1986, the newly independent Pixar was headed by President Edwin Catmull and Executive Vice President Alvy Ray Smith. Lucas's search for investors led to an offer from Steve Jobs, which Lucas initially found too low. He eventually accepted after determining it impossible to find other investors. At that point, Smith and Catmull had been declined by 35 venture capitalists and ten large corporations,[25] including a deal with General Motors which fell through three days before signing the contracts.[26] Jobs, who had been edged out of Apple in 1985,[2] was now founder and CEO of the new computer company NeXT. On February 3, 1986, he paid $5 million of his own money to George Lucas for technology rights and invested $5 million cash as capital into the company, joining the board of directors as chairman.[2][27]
In 1985 while still at Lucasfilm, they had made a deal with the Japanese publisher Shogakukan to make a computer-animated movie called Monkey, based on the Monkey King. The project continued sometime after they became a separate company in 1986, but it became clear that the technology was not sufficiently advanced. The computers were not powerful enough and the budget would be too high. As a result, they focused on the computer hardware business for years until a computer-animated feature became feasible according to Moore's law.[28][29]
At the time, Walt Disney Studios made the decision to develop more efficient ways of producing animation. They reached out to Graphics Group at Lucasfilm and to Digital Productions. Because of the Graphics Group's deeper understanding of animation, and Smith's experience with paint programs at NYIT, it convinced Disney they were the right choice. In May 1986 Pixar signed a contract with Disney, who eventually bought and used the Pixar Image Computer and custom software written by Pixar as part of its Computer Animation Production System (CAPS) project, to migrate the laborious ink and paint part of the 2D animation process to a more automated method.[30] The company's first feature film to be released using this new animation method was The Rescuers Down Under (1990).[31][32]
In a bid to drive sales of the system and increase the company's capital, Jobs suggested releasing the product to the mainstream market. Pixar employee John Lasseter, who had long been working on not-for-profit short demonstration animations, such as Luxo Jr. (1986) to show off the device's capabilities, premiered his creations to great fanfare at SIGGRAPH, the computer graphics industry's largest convention.[33]
However, the Image Computer had inadequate sales[33] which threatened to end the company as financial losses grew. Jobs increased investment in exchange for an increased stake, reducing the proportion of management and employee ownership until eventually, his total investment of $50 million gave him control of the entire company. In 1989, Lasseter's growing animation department which was originally composed of just four people (Lasseter, Bill Reeves, Eben Ostby, and Sam Leffler), was turned into a division that produced computer-animated commercials for outside companies.[1][34][35] In April 1990, Pixar sold its hardware division, including all proprietary hardware technology and imaging software, to Vicom Systems, and transferred 18 of Pixar's approximately 100 employees. In the same year Pixar moved from San Rafael to Richmond, California.[36] Pixar released some of its software tools on the open market for Macintosh and Windows systems. RenderMan is one of the leading 3D packages of the early 1990s, and Typestry is a special-purpose 3D text renderer that competed with RayDream.[citation needed]
Despite the income from these projects, the company still continued to lose money and Steve Jobs, as chairman of the board and now owner, often considered selling it. As late as 1994, Jobs contemplated selling Pixar to other companies such as Hallmark Cards, Microsoft co-founder Paul Allen, and Oracle CEO and co-founder Larry Ellison.[41] After learning from New York critics that Toy Story would probably be a hit, and confirming that Disney would distribute it for the 1995 Christmas season, he decided to give Pixar another chance.[42][43] Also for the first time, he took an active leadership role in the company and made himself CEO.[44] Toy Story grossed more than $373 million worldwide[45] and, when Pixar held its initial public offering on November 29, 1995, it exceeded Netscape's as the biggest IPO of the year. In its first half-hour of trading, Pixar stock shot from $22 to $45, delaying trading because of unmatched buy orders. Shares climbed to US$49 and closed the day at $39.[46]
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