The idea for the tentatively-titled project originated at an internal DWA retreat several years ago and "Shrek Forever After" director Mike Mitchell is developing it with the writers, although he isn't attached to direct at this point.
It's possible that the project could become a live-action/animation hybrid ... but nothing has been decided at the moment, as it's still very early in the development process.
Coincidentally, DreamWorks co-founder Steven Spielberg previously explored developing an imaginary friend project, and he also flirted with the idea of remaking the imaginary-rabbit movie "Harvey" with Tom Hanks for 20th Century Fox earlier this year ...
The question here: Will DWA expand into live-action in the foreseeable future? And if so, will you have DreamWorks releasing live action through the Diz Co., and DreamWorks Animation (same founders, different company) releasing live-action/animation through the Viacom subsidiary Paramount?
Inquiring minds yearn to know.