billd91
Not your screen monkey (he/him)
I haven't got a link to provide, but I was working at the time in the industry where these things were tracked. The stock market value of the Star Wars brand dropped significantly after The Phantom Menace came out around the 2000-2001 period, then slowly started to recover after about 2002 or so - but never quite to the level that it used to be. Other brands, like Harry Potter for example, started to compete with the market in the 2000s onward.
It's hard to explain to younger people today, but the Star Wars brand from the late 70s to the end of the 90s was largely unimpeachable. Various 'Greatest Movies of all Time" charts and lists (ubiquitous in the late 90s) frequently had Star Wars as the best movie ever by a country mile. A whole generation was brought up on the movies, and would not brook any criticism of the original trilogy whatever. It created, arguably, a totally unrealistic set of expectations and hype by the time The Phantom Menace was eventually released, and led to an unprecedented level of criticism when people discovered that it - ahem - wasn't very good.
The Prequels essentially popped the Star Wars bubble.
Pretty much. A lot of that bubble was based on over-inflated expectations. Toy makers like Hasbro assumed that Lucas could do no wrong with Star Wars (or at least not much wrong) and paid high licensing fees for the rights to crank out lots of toys, many of which never sold well. Had Phantom Menace been a better film, maybe their results would have been better - it's hard to tell because it's still possible they would have over-saturated the market anyway. But in the end they took a battering.