IMAX has removed The Mandalorian and Grogu from its premium large-format screens ahead of schedule, replacing it with Mattel's Masters of the Universe after a steep box office decline.
The Star Wars film experienced a historic 70 to 72 percent revenue drop in its second weekend in U.
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S. theaters, according to reports from Inside the Magic and Star Wars News Net.
The Jon Favreau-directed feature earned between $23 million and $25 million in its sophomore frame, following an $80 million to $81 million Memorial Day opening.
It fell to third place behind independent horror films Backrooms ($90 million) and Obsession ($30 million).
With an estimated production budget of $165 million before global marketing, industry analysts question whether the film will cross $300 million, potentially handing Disney a net loss exceeding $100 million.
This positions the movie alongside Solo: A Star Wars Story as one of the franchise's lowest-grossing entries.
IMAX stripped the exclusivity on June 1, 2026, to accommodate the upcoming live-action reboot Masters of the Universe, directed by Travis Knight.
The film was not originally scheduled for the premium format, which Disney had locked for a three-week window.
Insiders cited by Inside the Magic indicate the eviction is also fueled by a corporate feud after IMAX honored a pre-existing deal with Warner Bros.
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for Dune: Part Three over Avengers: Doomsday. Disney retaliated at CinemaCon by announcing its proprietary "Infinity Vision" theater certification to bypass IMAX.
The Masters of the Universe film follows Prince Adam (Nicholas Galitzine) as he rediscovers his destiny as He-Man to defend Eternia from Skeletor (Jared Leto).
The cast also includes Camila Mendes, Idris Elba, Morena Baccarin, James Purefoy, Charlotte Riley, Alison Brie, and Kristin Wiig.
Director Travis Knight told SFX magazine he can say little about She-Ra but noted she remains a major part of the universe.
"In the fullness of time, if we're lucky to tell more stories in this universe, She-Ra will play a huge part," Knight said.
Actor James Purefoy, who plays King Randor, expressed confidence that She-Ra would appear in sequels.
Knight added that several major sequences had to be omitted from the final cut, saying, "There are giant scenes in the movie that aren't there any longer."
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Produced by Todd Black, Jason Blumenthal, Steve Tisch, and DeVon Franklin, Masters of the Universe debuts in theaters and IMAX on June 5, 2026.
