Is The Budget Of The Mandalorian And Grogu Lower Than Expected? Don't Count On It

Jon Favreau, the director of "Iron Man" and "The Lion King," is a blockbuster maestro who, in recent years, has become best known for his work in the "Star Wars" galaxy. Specifically, he's the driving force behind the smash hit "The Mandalorian" and is now in the process of bringing Mando and his trusty sidekick Grogu to the big screen for next year's aptly titled "The Mandalorian and Grogu." Recent reports have suggested that Favreau managed to make the movie for less money than one might expect, but that's not entirely accurate.

Thanks to $21.75 million in tax credits from California (per the California Film Commission), "The Mandalorian and Grogu" appeared to have a final budget of $166.4 million. In the era of $200 million franchise blockbusters being far too normal, this would be pretty surprising. However, that's just the money spent in the 2024 tax year, so the final budget will almost certainly be higher. There are pre-production and post-production costs to be factored in here as well.

Just how much higher? That remains to be seen. 2019's "Star Wars: Episode IX — The Rise of Skywalker" cost $275 million and made $1 billion globally. In fact, all of the "Star Wars" movies during the Disney era so far have cost at least $200 million to produce, if not much more (with the majority of them hewing closer to $300 million than $200 million).

A slightly smaller budget might make some sense, though "smaller" is relative here. Maybe a little less than $200 million overall? This is, after all, a Disney+ TV series making the jump to the big screen. While we haven't seen a full trailer yet, the footage from "The Mandalorian and Grogu" shown at D23 last year suggests we're in for an action-packed, cinematic ride. Favreau also recently highlighted lots of practical droids and a partnership with Disney's Imagineers during a panel at SXSW this year. But while he doesn't appear to be skimping on the goods, that doesn't come cheap.

What we know for sure is that the pressure is on for Favreau, Disney, Lucasfilm, and the future of the "Star Wars" franchise. This is going to be the first movie in a galaxy far, far away in nearly seven years by the time it arrives. That alone brings pressure. It's also no secret that "Star Wars" has been hit or miss of late, with the sequel trilogy becoming intensely divisive amongst fans. The property needs an outright success, plain and simple.

A higher budget means a given movie needs to make more money at the box office to be considered profitable. "Solo: A Star Wars Story" was supposed to be a $125 million movie before the reshoots ballooned its cost to $275 million, meaning its $393 million global gross was disastrous; at the original budget, that still would've been a modest success. It's also worth considering that while "The Rise of Skywalker" took in $1 billion, it's not as though the next "Star Wars" movie can easily limp its way to such a number. Disney needs to be smart moving forward. One can only hope the 2024 figure represents the bulk of the budget for "The Mandalorian and Grogu."

Lucasfilm has several other new movies planned as well. Director Shawn Levy ("Deadpool & Wolverine") is making a mystery "Star Wars" film starring Ryan Gosling ("Barbie"). We've also got the Rey movie (which will bring back Daisy Ridley), James Mangold's "Dawn of the Jedi," Dave Filoni's big crossover film tying together the events of "The Mandalorian" and its spinoffs, and a possible new trilogy being put together by Simon Kinberg ("Dark Phoenix," "Star Wars Rebels"). Lucasfilm could use some positive momentum to help set these movies up for success.

Sub-$200 million budgets are a great way to aid that cause. $200 million or more? The bar for success is high enough that uncertainty creeps in. We'll have to wait and see where Favreau manages to land this plane in the end.

"The Mandalorian and Grogu" is currently set to hit theaters on May 23, 2026.