The low-budget horror film "Obsession" has overtaken "The Mandalorian and Grogu" at the box office during the second week of their theatrical runs [1], [2].

This shift highlights a growing trend where internet-culture buzz can propel small-scale productions to outpace massive franchise installments. The result suggests that high production budgets do not guarantee sustained audience dominance against viral marketing trends [4], [5].

According to reporting on May 29, 2026, the disparity in production costs between the two films is stark. "Obsession" was produced with a budget of $1 million [1]. In contrast, "The Mandalorian and Grogu" carried a budget of $165 million [1].

"Obsession, the $1 million horror movie, is now beating The Mandalorian and Grogu, the $165 million Star Wars movie," Paul Tassi said [1].

The Star Wars release saw a significant decline in its weekly takings. Reports indicate the film's earnings dropped by between 69% [3] and 70% [3] during its second week. This sharp decline coincides with the rise of "Obsession" and other titles tied to internet-culture trends, such as "Backrooms" [4], [5].

Industry analysts said that the draw of these low-budget horror titles has actively pulled audiences away from the high-budget Star Wars release [4], [5]. While the Star Wars franchise typically commands the market, the current box-office trajectory shows a vulnerability to niche, viral content that resonates with digital communities [5].

“"Obsession, the $1 million horror movie, is now beating The Mandalorian and Grogu"”

This box-office reversal underscores a shift in consumer behavior where algorithmic discovery and internet memes can outweigh traditional studio marketing. When a $1 million film outperforms a $165 million blockbuster, it demonstrates that the 'viral' nature of modern horror can create an immediate, high-density demand that disrupts the typical decay curve of major franchise releases.