I don't remember ever seeing this Christmas special until just last year on Netflix. So much of the plot reminded me of Toy Story. For instance; old toy desires not to be replaced by a new one, new toy gets free and believes it is a real being, not a toy, new toy thinks others are aliens, etc. Even so, I enjoyed it.

I might have to check it out. The way you described it, it sounds the same as Toy Story.

Naturally there are significant differences as well. Still, those major points of similarity kept reminding me of Woody and Buzz.

Apparently Kermit The Frog makes an appearance in the original version of this show. But the version I watched did not have him in there.

My mom had this taped off of TV when it aired back in the 80s and my brother and i used to watch it every year, looking back it was a little depressing as far as christmas specials go.