About Generation 2

Secret Surprise ponies
Magic Motion Ponies
Royal Ponies
baby Ponies
Generation two, or Gen2 or G2 in short, is the second generation of My Little Pony. This generation of My Little Pony is quite different from the popular gen1 and the new gen3 line, in that the ponies are skinnier and smaller. Generation two hasn't been popular by collectors during the years they were available in stores, but now that they are discontinued they are becoming increasingly popular.
Generation 2 lasted for six to seven years, officially from 1997-2002, even though you still might find some ponies available in stores in certain European countries. While the first wave of ponies were released in America and Europe, gen2 was soon discontinued in the States and Canada and was only available in Europe, while the later years of gen2 was only released in a few countries as France and Belgium.
Almost all gen2 ponies were earth ponies, only a few unicorns have been released and pegasus ponies were actually earth ponies with clip-on wings. Most gen2 ponies came with a bunch of accessories and some ponies were able to move certain parts of their body, the so-called magic motion ponies. Later on there were also baby ponies released who were all earth ponies.
The second generation was divided in Royal ponies and Normal ponies. Most royal ponies had tinsel in their hair and came with a special-shaped comb.
Of course gen2 had it's share of playsets including a Royal Castle, a kitchen, a wedding playset, a bed and a mansion.