Yesterday it was officially announced that Toy Story 3 would not be produced at Disney. You can read all about it here.
Many in the industry are really jazzed by this news (me included), but I can't help feeling sorry for the folks at Circle 7 (Disney's Pixar sequel studio). I whole heartedly agree with the decision to keep the sequels at their respective studios, it just makes sense, but its a shame that many artists are getting burned.
As the article said, and I have heard, many people at Circle 7 will be absorbed into Disney and/or Pixar which is good news. But all their time and effort have been for not. And I have been hearing that folks who were scheduled to start work later this year at Circle 7, have been notified that they are not needed.
So the chess game that Eisner started with Jobs has come to and end. And not surprisingly it is the artists that have paid the price.