I'm down with that. I was afraid it was gonna be regular actors when I read live action
Hopefully they'll try to nail the very colourful artsyle of the original film
Live action means that they will actually shoot film involving "live action" backgrounds. They will probably also do some rigging and mo-cap for one or more of the CGI characters.
It won't be a cartoon per se, but it will be 120-140 minutes of effect shots.