I don't think they should do a sequel right now. With Shrek 4 coming out next Summer, Dreamworks needs to cut down on the sequels, and start making non sequels.
I didn't care much for Monsters Vs. Aliens but I will say it was one of Dreamworks better animated films in its animation was pretty darn impressive, not as much as Kung Fu Panda but running up there.
Even if there is no sequel, Dreamworks is developing a TV series for Nickelodeon.
^ I'd rather they produce that instead of another movie.
The thing I see is that Dreamworks main problem with sequels is that not only are they not as good as the original, but most of them are of Shrek. It's not like they give out a sequel to every movie that makes over a 100 million at the box office.
Only if it's 200 million, and if it does well overseas.
I can't believe that I'm saying this, but I think it's rather shortsighted of Katzenberg to just pass off on an opportunity to make bank.
Seeing a sequel possibly get shot down might seem good, but the reasoning behind it is the same executive myopia that routinely chokes animation.
The sequels of the only DreamWorks films to actually get them (Shrek and Madagascar) outgrossed their predecessors, and it's likely that a Monsters vs. Aliens sequel would do the same.