Monsters, Inc. 2: Lost in Scaradise

Monsters Inc. 2 Lost in Scaradise was a cancelled sequel to Monsters Inc, it would have been produced by Circle 7 Animation, owned by Dfaisney.

History
Pixar had a contract with Disney that would let them make 7 films on their own, with Disney only involved for distributing purposes. After this contract ended, rights to all rights to franchises originally produced by Pixar would belong to Disney including rights to making sequels. When the 7th pixar film, cars was finished, Disney formed another animation company known as Circle 7 Animation who began working on drafts for Toy Story, Monsters Inc. and Finding Nemo sequels. Nothing is known about the Toy Story and Finding Nemo sequels as of right now unless those ended up being Toy Story 3 and Finding Dory.

Plot
On Boo's birthday, Sully and Mike go to her house to wish her a happy birthday however, when they get there, they find but an old lady asleep in her bed. This leaves Sully and Mike to think that boo has moved to a new home, so Mike and Sully set out to find her.

Why it was cancelled
Unknown

Result

 * The film was cancelled, and will likely never be released.
 * A prequel to Monsters Inc. titled Monsters University was released in 2012.