Publishers beware: the first move by a media conglomerate to take back its owned-IP has already taken place, according to reports.

The Wall Street Journal has it on good authority that Disney has turned down THQ’s pitch to create the video games adaptation of Toy Story 3 – opting instead to develop and publish the title in-house.

The news is particularly alarming considering THQ’s close relationship with the firm, which has seen the US publisher win the licence for big hitters such as Cars and Ratatouille in recent years.

Toy Story 3 sees Woody the cowboy and his toy-box friends dumped in a day-care center after their owner, Andy, leaves for college.