The original 1989 version of "Knick Knack" features exaggerated breasts on the two female figurines - the sunbather and the mermaid (the latter barely covered with starfish). This was meant to parody the absurd proportions of tacky figurines such as these, and to show why the snowman was so strongly attracted to them.
In 2003, the short was remastered and revised to accompany the release of
Finding Nemo (2003). In this version, the sunbather is flat-chested and the mermaid is now covered with a clam-shell top (á la Ariel in
The Little Mermaid (1989). This was done due to discomfort with the original version by
John Lasseter, who by this point was a father and felt uncomfortable showing the original version to his children. This original version is no longer available, with its last release on the laserdisc release of
Toy Story (1995). All subsequent releases, including in Pixar Short Films Collection 1 (2007) and on Disney+, have been of the 2003 revised version.