Whatever Happened to Circle 7? The Disney Studio That Almost Made Toy Story 3 Without Pixar

July 25, 2026

Whatever Happened to Circle 7 the Disney Studio That Almost Made Toy Story 3 Without PixarLong before Pixar became a permanent part of the Disney family, there was a brief and strange chapter where Disney tried to build its own version of Pixar from scratch, and it almost changed the future of Toy Story, Monsters, Inc., and Finding Nemo forever. That studio was called Circle 7 Animation, and if you have never heard of it, you are not alone. It only existed for about a year, but the story behind it is one of the wildest what ifs in Disney history.

Whatever Happened to Circle 7 the Disney Studio That Almost Made Toy Story 3 Without Pixar

Circle 7 was born out of a very public falling out between Disney CEO Michael Eisner and Pixar CEO Steve Jobs back in the mid 2000s. The two studios had a deal that gave Disney ownership of Pixar’s characters, and when they could not agree on how sequels should count toward that deal, Eisner decided Disney did not need  at all. He opened a new CG animation studio in Glendale, California, on a street called Circle 7 Drive, which is where the name came from. The plan was ambitious: crank out one sequel a year to Toy Story, Monsters, Inc., and Finding Nemo, all without Pixar touching a single frame.

For a while it looked like it might actually happen. Circle 7 had a script for a Toy Story 3, directed by Bradley Raymond, along with concept artists sketching out new looks for Woody and Buzz. There was a Monsters, Inc. sequel in the works too, titled Lost in Scaradise, written by Bob Hilgenberg and Rob Muir. Even a Finding Nemo follow up was taking shape, one early draft reportedly introduced Nemo’s long lost brother, coincidentally named Remy years before Ratatouille made that name famous. Tom Hanks and John Ratzenberger were both reportedly unwilling to return for Circle 7’s version of Toy Story, which tells you a lot about how the industry felt about the project.

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Then everything changed. Bob Iger took over as Disney CEO in 2005, and the story goes that watching a nighttime parade at Hong Kong Disneyland was enough to convince him Disney needed Pixar back in the family, since every character in that parade under ten years old had come from Pixar. By January 2006, Disney bought Pixar outright for 7.4 billion dollars, and Circle 7 was shut down just a few months later. Most of its employees moved over to what eventually became Walt Disney Animation Studios, and Pixar went on to make their own Toy Story 3 years later, reportedly without ever looking at Circle 7’s script. Ed Catmull later wrote that Pixar staff never blamed the Circle 7 employees themselves, since they had no say in why the studio existed in the first place. Had things gone just a little differently, an entire era of Pixar sequels might look completely unrecognizable today. Did you know about Circle 7 Animation before now, or is this the first you’re hearing of Disney’s almost Pixar replacement? Let us know in the comments!


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Scott Atwood Co-Owner, Writer, Webmaster
Scott Atwood is the Co-Owner, Co-Creator, and Webmaster of The Main Street Mouse, one of Florida's leading Disney and theme park news sources. With an 18-year background in technical support and systems management, Scott brings a detail-oriented, research-driven approach to everything he does — from managing the technical infrastructure of TMSM to covering the latest Disney news, Marvel updates, and technology developments. As Project Planner and Business Relations Manager for TMSM, Scott works behind the scenes to ensure the site runs smoothly while also contributing articles on topics he's passionate about — including Star Wars, Marvel, Disney Parks, and the latest in tech and pop culture. What started as a hobby alongside his wife Michele has grown into a full-time labor of love, reaching Disney fans across the country every day. Scott is also Co-Host of the TMSM Weekly Podcast and Co-Owner of the House of Mouse Expo. He feels blessed to spend his days doing what he loves alongside his best friend and partner in all things Disney.



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