James Wan can do no wrong with a limited budget, and with Insidious: Chapter 2 winning the box office this weekend with $40.1 million – on a $5 million budget – FilmDistrict announcing that it has plans to develop Insidious: Chapter 3 doesn’t come as a complete surprise.

Deadline reports that film star and screenplay writer for both Insidious films Leigh Whannell has been brought back to write the third installment of the highly successful franchise. However, there will have to be a search for a new director, as Wan has announced that he has officially retired from directing horror films. More on the retirement after the jump.

Here’s the full quote,

While the director is most known for his works in the horror genre, he felt that after ten years of making horror films, it was time for a slight career change. Here’s Wan response’s to if he feels he’s been pigeonholed as the horror director:

This is the right move for the director. Coming off of two very successful films that had very limited budgets, it’s about time we see what Wan can do with a different genre and with more money, although I find it hard to believe that Wan is completely done with the horror genre. I think if the script is good enough, Wan will come back to direct another horror film.

What do you think? Would you like to see Wan direct another horror film, or should he stay retired from that genre?

[Source: Deadline | MovieFone]