This news comes from The Pixar Blog who simply sent one of the archivists and emailing asking why Newt had been removed supplement to his Disney encyclopedia Disney A to Z. The response, received was simply:
The film has been cancelled.
Short and sweet. You can read the entire article over on The Pixar Blog. They mention that this is the first time that the studio has ever cancelled a movie publicly. But I guess we have to remember that the studio is still very young and that this sort of thing happens all the time. It takes courage to publicly announce that a movie is being made and then to can it before it’s too late. Pixar must have their reasons – heck, it may well have been their first bad movie, if they saw that early and decided to scrap it, good on them!
Head over to The Pixar Blog for much more info.