Now that Pixar and Disney have become one, John Lasseter and Ed Catmull announced to the Disney animation department that they are no longer producing Toy Story 3. The news comes from a forum, where the author claims:
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.
In other words, if Pixar wants to make a sequel to its films, it will. If Disney Feature wants to make a sequel to its film, it will. But the two will not cross.
That's a shame real shame. I think Toy Story was one of the few cases where the sequel may actually outshine the first. I can only assume the third film would have been even better, and a fourth even better than that, and so on and so on. Until eventually, after 150 or so, they're getting so good that God has to physically intervene, because we're just getting "too close."