Well the rumor is circulating that on Wednesday, Ed Catmull and John Lasseter, when meeting with the artists at Disney, announced that Toy Story 3 would not be happening. In a nutshell, Pixar would make any sequels to their films and Disney would make sequels to theirs. No flip flopping. Which makes sense. As for Circle 7, the studio Disney created for the sole purpose of making Pixar sequels, they mentioned they would like to use the talent that is there but did not give any specifics.
Again at this point this is rumor, however if you listened to the webcast that included Steve Jobs and Bob Iger, Iger himself said that the studio that does the original film should do it's sequel.
Oddly enough I said on this very blog in March of last year that I didn't think Disney would do Toy Story 3 and that the sequel studio would end up doing Chicken Little 2 (which has yet to happen) To read my take on Toy Story 3 from almost a year go click here
Somebody owes me that cookie.
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