In the Shadow of the Disney Empire: The Challenges Facing Lucasfilm

by Haley June 5, 2023

Disney’s Lucasfilm, a studio responsible for some of the most iconic franchises in cinematic history, finds itself at a crossroads. Once the harbinger of imagination and adventure, Lucasfilm’s recent struggles have raised serious questions about the future of its storytelling endeavors. Of particular concern is the Star Wars franchise under the leadership of President Kathleen Kennedy, which has seen a noticeable decline in both fan approval and financial success.

The story began promisingly enough when Disney acquired Lucasfilm for a hefty $4 billion in 2012. It was an investment that paired Disney’s century-old animation prowess with Lucasfilm’s galaxy far, far away. Early box office returns from the sequel trilogy signaled a match made in heaven, but as the narrative unfolded, the fanbase appeared to grow disillusioned.

Critics point to the trilogy’s inconsistent storyline and controversial character development as signs of misdirection. The portrayal of beloved characters like Luke Skywalker was particularly divisive among fans, with many feeling that the essence of their childhood heroes was corrupted.

Perhaps the most prominent voice questioning Kennedy’s vision is Mark Hamill, the actor behind Luke Skywalker, who distanced himself from the creative decisions made for his character. This kind of public disagreement within the Star Wars family has done little to calm the turbulent waters. As a result, franchise fatigue seems to have set in among the fanbase, with the final installment, “The Rise of Skywalker,” earning significantly less than its predecessor.

Disney’s theme park ventures into Star Wars have also seen disappointing results. The Star Wars-themed hotel, the “Galactic Starcruiser,” is set to shut down just 18 months after opening. The hotel was touted as an immersive experience for fans, but the costly packages combined with being set in the less popular Disney sequel trilogy, failed to attract the required number of guests.

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The next year is going to be critical for Disney. With the disappointing returns from recent Star Wars endeavors and a significant drop in Disney+ subscriptions, the company is under pressure to prove that Lucasfilm’s acquisition was not a billion-dollar misstep. Next to be thrown into the fire is the upcoming release of the latest Indiana Jones movie, “Indiana Jones and the Dial of Destiny.” Early reviews suggest this film may follow the disappointing path of its Star Wars brethren.

Amid these challenges, rumors have been circulating about the potential departure of Kathleen Kennedy from Lucasfilm. Kennedy’s contract is due to expire next year, and her exit could signal a significant shift in the direction of Star Wars. Fans have been lobbying to appoint Jon Favreau, the man behind the successful “The Mandalorian” series, as her successor.