The Timeline
There have been six Star Wars: The Old Republic timeline videos produced and presented by BioWare and LucasArts to date. Each one reveals more about the history leading up to the story we will see in Star Wars: The Old Republic. With an analysis of the timeline videos, both individually and as a whole, an idea of the greater story begins to appear. Note: ATC (After the Treaty of Coruscant) / BTC (Before the Treaty of Coruscant)

The timeline videos are released in reverse chronological order, which is slightly unusual when talking about a sequential order of events. Because of this, The Treaty of Coruscant was the first timeline video and also the one closest to the time period of TOR. This video highlights the ancient and ongoing struggle between the Sith and the Jedi.
The first entry shows us that the Jedi had discounted the threat of the Sith, and indeed denied their very existence. The Jedi are portrayed as naive, while the Sith are portrayed as patient and deceptive. In the time leading up to the Treaty of Coruscant the Emperor controlled half of the galaxy, however he grew impatient as he expected his victory to come more quickly. This impatience shows the Emperor to be just as arrogant and cocky as he is cunning, patient, and powerful. To expedite the conquest of the galaxy, the Sith proposed the Treaty of Coruscant.

With the Republic weakened by the blockade of the Hydian Way, they could not afford to ignore an offer of peace from the Sith. This was especially true because the Republic, and even the Jedi themselves, viewed the war to be unwinnable. Their dire predictions highlighted the speed and efficiency of the Sith onslaught.
It was then that the Sith Empire met with the Republic on Alderaan to discuss a ceasefire. Meanwhile, the Sith used the distraction of the peace talks to strike at the Republic's core with a direct attack on Coruscant. Such an action reinforces the idea that the Sith cannot be trusted at their word; they would betray it in an instant if it was advantageous to do so. Because of the attack, The Treaty of Coruscant was effectively forced on the Republic and, although the treaty had unfavorable terms, the Republics only option was to sign it.

The treaty itself was used as a weapon far more powerful than an entire army of Sith. As a result of the treaty, the Republic was forced to sacrifice allied planets and systems to save itself; many more worlds were conquered without the Empire firing an additional shot. The ensuing public relations nightmare led the Republic to blame the Jedi for the calamity, finally resulting in nearly the entire order being kicked off the planet. Without the assistance of the Republic, the Jedi, now on Tython, are left in a more vulnerable state than they would have been otherwise; perhaps exactly where the Emperor wants them to be.

With the unveiling of the second timeline video, the Mandalorian Blockade of the Hydian Way is broken, and the decisive sacking of Coruscant is revealed to be little more than risky plan performed when all else had failed. This timeline shows us that the risky sacking of Coruscant would not have been necessary had a small band of smugglers not intervened on behalf of the Republic.
The Emperor understood that the core worlds relied on the goods from the Outer Rim colonies to function. With this in mind, he manipulated the Mandalorians into creating a blockade of the Hydian Way. Starvation and riots broke out all over the core worlds and the Republic was willing to surrender to the Sith almost immediately. This event reinforces the Emperors preference for the use of manipulation rather than direct confrontation to force capitulation. However, the blockade did not succeed.

A band of smugglers led by Hylo Visz decided to take a risky gamble and attempt to break the blockade. The Republic seized the opportunity that non-allied smugglers made and pushed back against the Mandalorians. This shows exactly how willing the Republic is to ally with anyone that can help them get the job done. This video basically explains how the Smuggler class, an otherwise neutral profession, becomes a part of the Republic.
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