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VirtualMagic Animation was an American animation studio and software development company based out of Los Angeles, California. It was founded by Digital Productions' John Whitney Jr. and Gary Demos. Digital was bought by Omnibus Computer Graphics in 1986. They filed a complaint against their competitors, stating that their rights as minority shareholders of the company were breached in the Omnibus sale.

In early 1992, Whitney developed a "paperless" animation process where animation drawn on paper was scanned into a computer to be colored and composited. The company was originally as founded USAnimation, with David Lipman (who would later become one of the co-producers of Shrek franchise) as the vice president of the company. The animation industry was immediately receptive to this concept since digital capabilities were a powerful creative tool for the animation producer to improve the look of shows and do it more efficiently.

They worked on select episodes of The Simpsons, The Ren & Stimpy Show and Beavis and Butt-Head among others to provide the digital ink and paint services. The company began offering their digital animation system to other customers in 1995. In 1996, the company sold their software business to Canadian competitor Toon Boom and it's animation facility was renamed to VirtualMagic USA. Toon Boom continues development of the USAnimation software, now known as Harmony. VirtualMagic would continue to operate the company while expanding its production capacity to include CGI animation and significantly increasing employment.

In late 1997, the company moved its operations to the San Fernando Valley in North Hollywood. But in order to economically compete in the animated series and motion picture market, VirtualMagic evaluated potential affiliate foreign animation companies with digital capabilities as well as joint venture possibilities. So in 1999, VirtualMagic teamed up with Asian facility ImagineAsia Studio to form VirtualMagic Asia based in Manila, Philippines.

But in 2003, the company was put up for sale due to the changing dynamics of the American animation industry and its non-animation industry investors wishing to move on. As a result, both the American and Asian branches closed down that same year.


VirtualMagic Animation/USAnimation's digital ink & paint and compositing work include:

Shows worked on by VirtualMagic Asia:

  • God, the Devil and Bob (digital ink & paint; with Fil-Cartoons)
  • Harvey Birdman, Attorney at Law (digital ink & paint; 5 episodes)List 

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