Sony never said the PS2 would deliver Toy Story graphics, (though they did say movie quality). Thats one impressively long running gaming myth. MS directly said the Xbox would, but its never attributed to them.
I remember the "Toy Story" statements being made about the PS2 back in 1999.
I'm pretty sure Sony said it. If not, then it was articles saying that the PS2 would provide "Toy Story" movie-like graphics.