As the 2025 summer movie season (May 2 – September 1) enters its final stretch, a striking trend has emerged: For the first time in years, not a single animated feature ranks among the top 10 highest-grossing films. This marks a dramatic reversal from animation’s traditional summer dominance, revealing systemic challenges facing major studios136.
📉 Animation’s Historic Slump: By the Numbers
- Top Performers Dominated by Live-Action:
- Disney’s live-action Lilo & Stitch leads with $420 million, followed by How to Train Your Dragon: The Reawakening ($250M)19.
- Superhero films (Superman, Thunderbolts) and original IP like F1: Racer’s Edge all surpassed $100 million—a threshold no 2025 animated release has reached36.
- Animation’s Bleak Reality:
- Disney/Pixar’s Earthbound—2025’s top-grossing animated film—earned just $71.63 million, a catastrophic result compared to 2024’s Inside Out 2 ($650M)16.
- Paramount’s Smurfs: Magic Mayhem flopped with $23.61 million, failing to revive its legacy IP3.
- Even 2025’s highest-grossing animated film overall (Dog Man, released in January) only managed $97.9 million—far below historical norms6.
📖 Contextual Collapse: Why 2025 Stands Out
Compared to Recent Summers:
- 2024: Blockbusters like Inside Out 2, Despicable Me 4, Kung Fu Panda 4, and The Garfield Movie drove animation dominance1.
- 2023: Spider-Man: Across the Spider-Verse, Elemental, and TMNT: Mutant Mayhem all crossed $100M+3.
2025’s “Perfect Storm” of Factors:
- IP Drought: Major franchises (Despicable Me, Shrek) are on hiatus until 20266.
- Original Film Underperformance: Earthbound’s weak reception discouraged family audiences3.
- Studio Pivot to Live-Action: Resources shifted to remakes (Lilo & Stitch, How to Train Your Dragon) and superhero films (Superman)19.
- Market Saturation Fatigue: Audiences showed preference for high-stakes action (e.g., F1: Racer’s Edge) over perceived “safe” animation9.
⚡ The Bad Guys 2 Wildcard: Last Hope for Animation?
Scheduled for August 1 in North America (August 16 in China), DreamWorks’ The Bad Guys 2 represents animation’s final summer opportunity47. Key advantages:
- Strong Precedent: The 2022 original earned $251 million globally with a modest $69M budget and an “A” CinemaScore4.
- Strategic Timing: Avoids direct competition (e.g., Minecraft film) and capitalizes on a post-Elio animation vacuum27.
- Global Appeal: The heist-comedy format and returning voice cast (Sam Rockwell, Awkwafina) could draw international audiences710.
Box Office Pro projects a $25M–$35M U.S. opening—a solid start if sustained by word-of-mouth2.
💡 Industry Implications: Beyond 2025
- Remake Reliance vs. Original Risk: Disney’s Lilo & Stitch success ($340M global opening) underscores nostalgia’s power, but at the cost of original animation9.
- Streaming’s Shadow: With Bad Guys 2 hitting Peacock by early 2026, theatrical windows for animation keep shrinking—impacting revenue potential7.
- Global Market Dependence: Films like Superman (underperforming in China with $8.4M) highlight regional disparities that animation once mitigated58.
🔎 Key Additions for Value & Originality
- Budget-to-Revenue Analysis: Superman’s $225M budget vs. $337M global cume exemplifies blockbuster risk58.
- Audience Demographics: Lilo & Stitch drew 60% female viewers—underscoring animation’s need for broader appeal9.
- Critical Divergence: While Earthbound failed commercially, Bad Guys 2’s focus on “reluctant heroes vs. female villains” could resonate in today’s climate710.
This expanded analysis contextualizes 2025’s animation downturn as a confluence of creative, strategic, and market forces—positioning Bad Guys 2 as a litmus test for the genre’s evolving relevance.