November 26, 1998 12:00 AM

The Walt Disney Co. has agreed to change a sombrero-wearing character in the “Toy Story 2” video game because it offended some Hispanics. The decision was announced Thursday after a peaceful demonstration outside the Santa Monica (Calif.) headquarters of Activision, which produced the game with Disney based on characters from the new hit animated film. One level of the game features a villain with a mustache, bullet bandolier and a sombrero, which Hispanic activists said was a Mexican stereotype. The character does not appear in the “Toy Story 2” movie.

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