AS THE HALFWAY point of 2010 approaches, Hollywood is in a bit of panic when it comes to box office. With statistics like “the worst Memorial Day weekend box office in nine years,” “May attendance down by 19% compared to last year” and “overall summer box office down $147 million from last year,” hitting rock bottom seems to be an understatement. The list of critical and commercials disappointments keeps getting longer: “Killers,” “Prince of Persia,” “Sex and the City 2,” “Get Him to the Greek,” and last week’s “Jonah Hex” to name a few. However, that may have changed with last weekend’s opening of the third installment of the Pixar franchise, “Toy Story 3.” Its domestic gross topped over $100 million and broke many records. (In all fairness, the film was screened at 2000-plus digital 3D locations, with higher ticket prices that accounted for 60% of its domestic gross.) But more importantly, it’s a fantastic, must-see movie.

15 years since it first enchanted audiences, this “Toy Story” version picks up with Andy, the owner of the toys, going off to college. He decides to send them off to live in the attic while he takes his favorite toy, Woody (voiced by Tom Hanks) with him. The anxious, attic-bound toys, whose only desire is to be played with, are devastated when they find themselves sitting as trash waiting to be carted off to the garbage dump. (Andy’s mom accidentally grabbed the trash bag full of toys and unknowingly placed them by the curb.)

In a twist of fate, the toys show up at a children’s daycare center that resembles the Island of Misfit Toys. Nonetheless, they’re thrilled kids will play with them even if it seems they’ve been put out to pasture. Inside the center’s toy world, a stuffed animal with a soothing, southern drawl named Lots-o’-Huggin’ Bear (Ned Beatty) runs things. As the film’s heavy, Lotso sends the new arrivals off to the “caterpillar room” where the most rambunctious kids do not play nice with the toys. Meanwhile, Woody had already left the group to get back to Andy. When he learns the truth about the prison-like atmosphere and its evil leader, Woody returns to help his family of toys out of harm’s way. The ending of the film is quite touching and will require some tissues.

While “Toy Story 3” has its old spirit and familiar toys (Buzz Lightyear, the Potato Heads and the aliens), it’s also refreshed with new exciting elements, including 3D technology. There are new toys (Ken, Barbie and the Fisher- Price Telephone with the moving eyes). There are nods to famous movie scenes and genres. While everyone might not get the references, it doesn’t matter because ultimately they enrich the film, each scene layered beautifully by the first class Pixar team led by director Lee Unkrich (co-director of “Toy Story 2” and “Finding Nemo”). It’s nothing less than magical.

“Toy Story 3” is MPAA-rated G for General Audiences; also available in 3D, nationwide.