With the Disney/Pixar deal now in place, the question becomes what will happen to the various sequels based on Pixar's work that Disney had in development - most notably a third "Tory Story" feature.

According to Coming Soon and a post at Animation Nation, Pixar heads turned Disney bigwigs Ed Catmull and John Lasseter "announced to Feature Animation employees [Tuesday] that the 'Toy Story 3' production will end effectively [Tuesday]. They said that sequels should only be made if there is a really great story that demands it, and should be the domain of those who created the original film."

An Associated Press article confirmed said news - "One immediate sign of Lasseter's influence is that plans for Disney to make the long rumored sequel "Toy Story 3" on its own have been scrapped. If the film is made, it will be done by Lasseter and the other creators of the original film, the companies said".

Bradley Raymond was announced as director of the film in which Buzz Lightyear would have been recalled to Taiwan after a series of malfunctions. Learning of a productwide recall, all the toys in Andy's room, under Woody's leadership, were to head to Taiwan to save Buzz from doom.