Disney animation shuts down during the eighties

During the eighties, Walt Disney Feature Animation was going downhill. The Black Cauldron flopped so hard, it nearly shut down the studio, and it was only due to the success of The Great Mouse Detective that they were able to continue. Meanwhile, Don Bluth was the one making millions with An American Tail and The Land Before Time.

So, let's say in an alternate timeline, TGMD flops along with TBC, resulting in Disney shutting down their animation department and focusing more on live-action films and theme parks. Would Don Bluth continue being the king of animation, especially since there's no Little Mermaid to out-compete All Dogs Go to Heaven? Would Disney distribute animated films from other studios? Would Pixar even exist? (They were making shorts in the nineties, but they wouldn't have made Toy Story without the help of Disney.) Would anyone else be able to develop CG animation in their place?
 
So, let's say in an alternate timeline, TGMD flops along with TBC, resulting in Disney shutting down their animation department and focusing more on live-action films

Does "live action films" include Touchstone? Because, apart from that particular brand, I don't see a lot of potential in further installments of The Apple Dumpling Gang.
 
Probably mainly Touchstone stuff, yeah.

I imagine Stephen Spielberg would break up with Don Bluth and start up Amblimation like IOTL, bringing over all the Disney animators who were laid off. Maybe Jeffrey Katzenberg would also join, sort of starting up Dreamworks early.

As for Pixar, maybe they would make A Tin Toy Christmas (a Christmas special that Toy Story started out as IOTL) with the help of Spielberg instead of Disney? Then I imagine they would do that ant movie that started out at Disney (and evolved into both A Bug's Life and Antz IOTL), along with Shrek.
 
Brad Bird is able to jump start his animation and film studio he had planned to help make an animated Spirit film. Most of the prospective animation staff were the so called "Young Pups" of Disney who would make it big in the 90s
 
I was also thinking that Disney could still distribute The Nightmare Before Christmas under Miramax, like IOTL. And ITTL, James and the Giant Peach is more successful, so Skellington Pictures (Henry Selick and Tim Burton's stop-motion studio at the time) end up producing the Toots and the Upside Down House adaptation that never was. Maybe they could also do the other stop-motion films Selick and Burton directed IOTL, like Corpse Bride, Coraline, and Frankenweenie, albeit slightly earlier. (I heard Neil Gaiman wanted Selick to do a Coraline adaptation before he even finished the book.)
 
I had another realization: since Disney never made Aladdin ITTL, does that mean Richard William's The Thief and the Cobbler wouldn't be bastardized?
 
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