The Disney production "The Mandalorian and Grogu" fell to third place at the domestic box office during the weekend ending May 31, 2026. The film was surpassed by the A24 release "Backrooms" and the horror film "Obsession," which was produced for approximately $1 million. This marks the first time a live-action "Star Wars" theatrical release has failed to hold the number one spot for at least two consecutive weekends.
The shift follows the film's debut over Memorial Day weekend, which began May 22, 2026. During its opening, the movie earned $167 million globally, recorded as the lowest opening figure for any "Star Wars" film to date. By mid-week, the film lost its top position to "Obsession," a story regarding a failed romance directed by a first-time filmmaker that had been in theaters for nearly two weeks.
"Backrooms," an adaptation of YouTube shorts by Kane Parsons, contributed to the decline in ranking for the "Star Wars" franchise. Industry figures noted that recent original films, such as "Sinners," "Weapons," and "One Battle After Another," also outperformed financial expectations in 2025. Michael De Luca, co-chair of Warner Bros., stated at the Produced By conference that relying solely on established material can lead to a lack of innovation and a depleted pipeline of films.
For the movie-going public, this shift resulted in "The Mandalorian and Grogu" dropping from the top spot in its second week, a departure from the historical performance of previous entries like "Solo: A Star Wars Story." The financial scale is significant; "Obsession" reached the top spot despite a production budget of just $1 million, a fraction of the typical cost for a major franchise installment. This trend may lead to more varied theatrical options as studios observe that original stories are drawing larger crowds than expected.
The industry is already adjusting its investment models in response to these trends. Warner Bros. announced the launch of a new specialty label called Clockwork in April 2026, which focuses on developing new projects and acquiring films for worldwide theatrical release. The next steps for the industry include monitoring the performance of upcoming 2026 releases to determine if the preference for original content over established intellectual property remains consistent. The next major "Star Wars" box office report will follow the film's third weekend in June.