There was a time when a Star Wars movie that grossed $345 million worldwide would have been cause for celebration, or at least for the uncorking of something sparkling in Burbank. That time, it appears, has passed.

Disney acknowledged on Wednesday what industry observers had been murmuring for weeks: "Star Wars: The Mandalorian and Grogu," the big-screen adaptation of the streaming series that introduced the internet's favorite green infant, did not meet the company's box office expectations. The company's chief executive, Josh D'Amaro, delivered this news to investors with the corporate equivalent of a shrug and a gesture toward the gift shop.

"Even when our franchise films don't meet our box office expectations," Mr. D'Amaro said, "our investments in these core properties fuel other parts of our company." He cited toy sales, theme park attendance at the Millennium Falcon attraction, and what he called "significant engagement in gaming."

(One imagines the accountants at Disney have developed an elaborate spreadsheet that converts disappointed sighs in movie theaters into plush toy purchases at Disney Springs.)

The film, which cost an estimated $165 million to produce before marketing, has earned roughly $345 million globally — a figure that sounds impressive until one recalls that the studio's share of ticket sales rarely approaches half that sum. Disney's chief financial officer, Hugh Johnston, offered the sort of philosophical observation that tends to emerge when numbers disappoint: "The nature of the film industry is such that it is more of a portfolio game."

The performance continues a somewhat uneven run for the Star Wars franchise under Disney's stewardship, which has included the widely criticized "Rise of Skywalker" and the outright stumble of "Solo," which managed only $392 million in 2018. That "only" is doing considerable work in that sentence.

Still, the company expressed optimism about its next galactic venture, "Star Wars: Starfighter," which will star Ryan Gosling under the direction of Shawn Levy and is scheduled for release in May 2027. By then, perhaps, the franchise will have found its footing — or at least sold enough plush toys to make the question moot.

Original story published in The Hollywood Reporter: "Disney Admits 'The Mandalorian and Grogu' Disappointed at Box Office"