Rough Timeline

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Okay, now for the one with a little more lore.

When does the game take place?
For the simple answer, 2003. Two years before Oswald's rights were restored to Disney, seven years before the release of the first game. 75 years after Oswald was taken and Mickey was created.
For the not-so-simple answer, the game takes place on March 25, 2003–the anniversary of the very day Mickey's mistake happened. Mickey has, of course, forgotten about the incident (it's difficult to remember stuff when you're woken up at 2:00 AM). Now, I am aware that the calendar in the opening cutscene says November 18 (which also happens to be Mickey's birthday), but I am taking a few creative liberties.

Timeline
Okay, here's the rough timeline of events for the game's universe.

1923: Walt Disney starts the Alice Comedies. He finds and uses the magic paintbrush and Julius is brought to life.
1927: Alice Comedies end, Walt signs his contract with Universal, and Oswald is brought to life. Fanny is created as his love interest, but leaves after four cartoons because she doesn't like the way she's depicted. Ortensia is created to replace her shortly after.
1928: Oswald is taken away by Universal, and Walt creates Mickey Mouse. Oswald continues working for Universal (against his own volition), but has a difficult time. Mickey soon eclipses Oswald in popularity and becomes an icon.
1929: Oswald is forgotten and his Heart disappears, along with Ortensia. Fanny would not be forgotten until 1934.
1928-1965: Mickey helps Walt to make the Disney company more and more successful, as more characters join the team. Wartime makes him too stressed to do any acting, so he sits out during that period. Mickey sees Walt as a father to him and strives to keep him happy.
1966: Walt dies of lung cancer, and Mickey is devastated. Leadership of the Disney company moves to Walt's brother Roy. Mickey stops acting for a period.
1967: Oswald, Fanny, and Ortensia are brought back from a nearly 40-year limbo by Yen Sid, who explains their situation and creates Wasteland, where the trio begin to build their new home as more forgotten toons appear.
1973: Mickey causes the Thinner Disaster, leaving Wasteland in ruins.
2003: The game's events happen!

Peace out!

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