Director Brad Silberling (Land of the Lost) previously revealed that he is considering making a "Lemony Snicket's A Series of Unfortunate Events" sequel. He now tells Sci Fi Wire that maybe going down the live-action route is not the best idea.
"Nothing too concrete, but you start the movie with everybody thinking you're heading into another live-action movie," he explains. "But it's taken so long for this one to happen, and Olaf is still stuck in the makeup trailer and everyone else, and so Lemony Snicket basically tells you, 'Unfortunately, enough waiting: No, we're going to have to tell you the real story.' Boom, you dial through a soundstage door, and you're introduced into a stop-motion universe."
He continued: "Actually that's my hope for the next film, that it can be stop-motion."
Silberling also said there are some outstanding legal issues revolving around the franchise because of the Paramount/DreamWorks split. "But that actually is not a bad thing for us; I think Paramount in particular had expressed interest in maybe trying to find a way back to the franchise."