Is Pixar making a live action film?

With an unrivaled parade of blockbusters, I always figured it would be a matter of time until Pixar branched out into other types of films. I know I would be really interested to see what kind of live action films they could produce.
I think Wall•E could be a test to see if they can create an ET-like film that engrosses kids, but consists of a dramatic storyline. If it does well, I expect we’ll see Pixar move beyond just family-fare and see if they can work their magic on other genres as well.
Though I would expect that before Pixar released a feature film, they would produce a variety of live action shorts, as they’ve done over the years to test their latest animation technology.
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