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While the first Neverending Story movie is great, the sequels are better left unmentioned.
However, things could have gone much better than in our timeline.
This is because Michael Ende, the writer of the book The Neverending Story wrote another book.
That book is called The Night of Wishes and it was published in 1989 and adapted in 2000 into an animated series called Wunschpunsch.

The book plot:

The evil sorcerer Beelzebub Preposteror has contracted with His Excellency the Minister of Pitch Darkness to perform acertain number of evil deeds each year.
This year, however, he did not meet the requirement, because the High Council of the Animals has sent the cat Maurizio as a spy, which forces Beelzebub to be more cautious.
On New Year's Eve he joins forces with the evil witch Tyrannia Vampirella, who has the same problem due to the raven Jakob who is spying on her.
Together they try to brew the eponymous Notion Potion that will grant them all wishes, in order to fulfill their part of the contract before midnight.
If they succeeded to brew the potion they wouldn't even have to keep it secret from the animals,
because due to the nature of the potion every wish they make will have the exact opposite effect - i.e. if they wish someone good health, he'll become sick instead.
The plot starts on New Year's Eve at 5 pm and the chapters each represent one hour until midnight to illustrate the increasing time pressure that the characters are under.
On the one hand, the sorcerers have to complete a five-meter-long recipe to brew the potion, while constantly getting in each other's way.
On the other, the cat and the raven must find a way to stop their evil plan while tackling their own problems, namely the obesity of the cat and the chronic diseases of the raven.
Nevertheless, they devise a plan to exploit a weakness of the potion: when the potion has not been fully drunk up before the first ring
of the bell at midnight, the potion won't reverse the meaning of the wishes - as expected by the two sorcerers - but instead grants them as wished.

What if, instead of making the sequels to Neverending Story, Warner Bros adapted The Night of Wishes into a movie?
The 1984 movie Gremlins proved that the needed practical effect are there to make the characters work.
We could assume the movie is released in 1991, instead of the first sequel to Neverending Story.


OTL Timeline:

1979 - The book The Neverending Story by Michael Ende is published.
1984 - The film The Neverending Story directed by Wolfgang Petersen is distributed by Warner Bros Pictures.
1989 - The book The Night of Wishes by Michael Ende is published.
1991 - The film The NeverEnding Story II: The Next Chapter directed by George T. Miller is distributed by Warner Bros Pictures.
1994 - The film The NeverEnding Story III: Return to Fantasia directed by Peter MacDonald is distributed by Miramax Films.
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