I'll give you an example of one. When you make a copy of analog audio recording, like tape cassette to another tape cassette, you pick up noise artifacts, in this case hiss. If you make a second-generation copy it gets worse exponentially. The same is true of optical analog copies. You take a piece of film, make an optical copy, you pick up noise artifacts, in this case optical noise which comes across as blurriness in some cases, comes across as other noise artifacts in other cases.

Now George, to make Star Wars, actually had to composite together up to thirteen pieces of film for each frame. The matt paintings for the backgrounds might be a few pieces of film, the models might be a few pieces of film, the live action might be a few pieces of film, some special effects might be a few pieces of film. And every time he'd make a copy to composite two together and then add a third, then add a fourth, he was adding noise artifacts with each generation. If you go buy a laser disk of any of the Star Wars Films, if you stop it on some of the frames, they are really grungy. Incredibly noisy, very bad quality.

George being the perfectionist he was, said "I'd like to do it perfectly," do it digitally; and nobody had ever done that before. He hired some very smart people and they figured out how to do it for him, digitally with no noise artifacts. They developed software and actually built some specialized hardware at the time. George had at some point decided that this is costing him several million dollars a year and decided that he didn't want to fund it anymore, so I bought this group from George Lucas and I incorporated it as Pixar and we set about revolutionizing high-end computer graphics.

If you look at the ten most important revolutions in high-end graphics, in the last ten years, eight of them have come out of Pixar. All of the software that was used to make Terminator, for example -- to actually construct the images that you saw on the screen -- or Jurassic Park with all the dinosaurs, was Pixar Software. Industrial Light and Magic uses it as the base for all of their stuff.

But Pixar had another vision. Pixar's vision was to tell stories. To make real films. Our vision was to make the world's first animated feature film -- completely computer synthetic, sets, characters, everything. After ten years, we have done exactly that. We have developed tools, all proprietary, to do this, to manage the production of this thing as well as the drawing of this thing, computer synthetic drawing. We are finishing up making the world's first computer animated feature film. Pixar has written it, directed it, producing it. The Walt Disney Corporation is distributing it and it's coming out this year as Walt Disney's Christmas Picture. It's coming out November 11, I believe, and it's called "Toy Story." You will hear a lot about it because I think its going to be the most successful film of this year.