I'm sorry, but
limited animation is something completely different from
cutout animation!
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Limited animation is defined by breaking up a character into moving and not much moving parts, like a stand-still face and body with moving mouth and blinking eyes; and it's often relying on heavy re-use and cycling animation, think of Fred Flintstone running: alays the same run cycle in every episode. The parts were traced and painted traditionally on cels, which were punched and put on peg bars to assure registration. Aside from this assembly-line approach the drawings themseves could be as loose as usual.
Cutout animation at the core is cut-out parts being moved independently under the camera (with no registration). This was refined immediately by rigging parts with real joints (like a jumping jack, you can see that in some of the earliest silent films). The parts didn't transform or distort, but could be replaced by others. (Examples: "Monsieur TĂȘte" (Jan Lenica)
https://www.youtube.com/watch?v=odsIansn5Yk for the classical jerkiness, and of course "Hedgehog in the fog" (Yuri Norstein)
https://www.youtube.com/watch?v=ThmaGMgWRlY which often is named the pinnacle of what can be achieve with cutout animation.)
The main defining difference is the use of or absence of registration. Classic cutout animation may appear jerky for this reason. Limited animation breaks up characters into parts, but aims to create a smooth movement.
A technique often used in eastern europe, but also in france (René Laloux!), was to animate FBF on paper, colorize these drawing luxuriously, then cut out the characters and paste them on punched cels. Best known example would be "La planet sauvage" (Fantastic Planet). This approach doesn't count as cutout animation.
Of course with Moho we can have the best of both worlds in one: separated parts, exchange animation, freely animated or rigged, and everything is registered without the hassle of punching cels. The only thing missing would be the little signs of analogue filmmaking: paper outlines, little shadows, some dust, some reflections, and the occasional hand in the frame.
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