It's official DisneyToon's is out of the direct-to-DVD sequel business.

In a story from The Hollywood Reporter, DisneyToon Studios is going to stop making straight-to-DVD sequels as was originally speculated in this earlier article.

The company will now "focus on original stories."

The decision to end the string of sequels Disney Toon Studios put out "coincided with the announcement that DisneyToon now will operate as a separate unit of Walt Disney Animation Studios under the supervision of Pixar impresarios Ed Catmull and John Lasseter."

For a long time now, "Pixar executives have made no secret of their disdain for most Disney-animated sequels; four years ago -- long before Disney's purchase of Pixar -- Steve Jobs called them 'pretty embarrassing.'"

Despite the changes, Disney and Pixar are still gearing up for Toy Story 3 (to come out in 2009), and the last sequel DisneyToon will be putting out straight-to-DVD will be The Little Mermaid III

DisneyToon's first "original" production will be Tinker Bell, whose $50 budget was the catalyst for this restructuring of the company in the first place.