M3GAN was a sensation when it came out in 2023. An original, standalone movie at the time, the film’s portrayal of AI and its unique blend of campy comedy and horror captivated audiences. The movie made a whopping $180 million on only a $12 million budget, which was particularly impressive for a January release.

Blumhouse, the studio behind the film, took this as a sign to go all in on the horror franchise. M3GAN 2.0 was announced less than two weeks after the first film’s release. At the time, the AI doll was blowing up all over TikTok and other social media, so the sequel film’s success would be a good bet.

The studio was so confident about this second movie that they went ahead and doubled its budget. M3GAN 2.0 cost them an estimated $25 million, but even if it only matched the first film’s box office, it would make a lot of money.

There were hopes that the added name recognition from the first movie would propel M3GAN 2.0 to success. Jason Blum himself expressed this point in a recent interview, noting that he and his team thought “they could do anything with M3GAN,” including genre swapping and more.

Unfortunately, the ᴀssumption was misguided. Critics and audiences alike did not take kindly to many of the changes the sequel made, and M3GAN 2.0 underperformed expectations. The movie made just $37.7 million worldwide, paling in comparison to its predecessor, and certainly not meeting summer blockbuster expectations.

This mediocre box office means that a third installment won’t be on a fast track. Blumhouse’s M3GAN franchise gamble, however, does have further implications beyond the M3GAN 2.0 fumble.

Blumhouse’s Bet On M3GAN Didn’t Stop With M3GAN 2.0

A Spinoff Movie Is Already On Its Way…

The M3GAN universe is not ending with the 2025 film. Before the sequel’s release, Blumhouse had already announced the development of a spinoff movie called SOULM8TE. This film is directed by Kate Dolan and features Lily Sullivan, Oliver Cooper, Claudia Doumit, and David Rysdahl.

Right now, SOULM8TE is set for release on January 9, 2026. This positions the film in a similar window to the original M3GAN 2.0.

While Blum has promised that SOULM8TE will be “very different” from M3GAN or its sequel, it still poses a big financial risk to the company. Expanding their AI-verse did not go well on the first attempt and likely represented some losses. They are now going into this next film with less momentum and not a lot of time to correct course.

SOULM8TE‘s box office run will be what ultimately determines how successful Blumhouse was in their M3GAN franchise gamble. If the film manages to gain traction, it will make up for some of M3GAN 2.0‘s downsides. If it flops, however, it will likely bring an end to what could have been a big franchise.