The Los Angeles Times has revealed that Lucasfilm, the studio owned by Star Wars creator George Lucas, has 'quietly' started up a new unit, Lucasfilm Animation, in order to gain a share of the computer-generated animation business.  The Lucasfilm Animation studio will spin off from Industrial Light & Magic, the industry-leading special effects unit that has done the special effects for the Star Wars films as well as numerous other blockbusters including this summer's The Hulk and Terminator 3: Rise of the Machines.  According to the Times, the Lucasfilm Animation staff currently consists of nine members of ILM's animation development team -- and with no projects currently under development, it will likely be several years before Lucasfilm Animation can enter the lucrative feature animation derby. 

Starting his own animation unit apparently resulted in large part from Lucas' frustration in dealing with other studios, where frequent management changes were at odds with the long lead times required by animated features.  ILM had been working on various computer-generated animation features since 1997, but Universal Studios, which was working with ILM on both Frankenstein and a Curious George feature, pulled out of both projects.  By developing Lucasfilm Animation, Lucas can obviate the need for partnering with any other studios, and follow the lead of Disney, Dreamworks, and most recently Sony (see 'Sony Revs Up Animation Unit') in creating the capability of producing feature-length CGI cartoons.

Ironically Lucas sold Pixar, the acknowledged industry leader in creating CGI animated features, to Steven Jobs (of Apple Computer fame) for $10 million back in 1986.  Today the studio that produced the Toy Story films, Monsters Inc. and this summer's Finding Nemo, is, according to the Times, worth more than $4 billion.