‘The Mandalorian and Grogu,’ Disney’s first Star Wars theatrical release of the 2020s, faltered dramatically at the box office, dropping 70% in its second weekend to gross just $25 million. The film, which opened with $81.7 million over Memorial Day, fell to third place behind two low-budget releases: ‘Backrooms,’ a $10 million horror film from a 20-year-old YouTuber, and ‘Obsession,’ a $750,000 thriller from another online creator. The collapse suggests the film will fall far short of its estimated $500 million break-even point, potentially costing Disney over $100 million.

The underperformance highlights growing audience skepticism toward legacy franchises lacking strong storytelling. Once dominant with ‘The Force Awakens,’ the Star Wars brand has struggled since ‘The Last Jedi’ and ‘The Rise of Skywalker’ drew criticism for incoherent plots. Streaming spin-offs and declining cultural relevance have further eroded enthusiasm, especially among younger viewers who don’t share older generations’ attachment to the series.

With production and marketing costs near $300 million, Disney now faces a significant financial loss. The contrast with micro-budget successes underscores a broader industry shift: audiences are rewarding fresh, low-cost creativity over bloated, formulaic sequels. Whether Lucasfilm can regain trust remains uncertain.