re: Gunn no longer running DC Studios.

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Gunn’s “Superman,” starring David Corenswet — the duo’s first big swing as bosses — was touted as a hit with $618 million against a $225 million budget. Those ticket sales were promising enough, given the general decline in popularity of comic book movies. But they didn’t necessarily signal the kind of lasting enthusiasm that spawns an interconnected universe. Momentum all but evaporated with July’s money-loser “Supergirl,” which flopped with $126 million globally against a $170 million budget. And while October’s “Clayface” performed modestly with $109 million against a $44 million budget, sources suggest the body-horror thriller won’t break even until the studio factors in downstream revenues.

Insiders have raised eyebrows at Gunn and Safran’s decision to focus on lesser-known characters, like Superman’s cousin Kara El-Zor, aka Supergirl, and the Batman villain Clayface, rather than building out the franchise with marquee names. Although superhero movies have been hit or miss, the ones that spotlight notable characters can still pack a box-office punch. July’s “Spider-Man: Brand New Day” became the third-biggest movie in history with $2.5 billion, and December’s “Avengers: Endgame,” which brings back just about all of Earth’s Mightiest Heroes, could challenge the web-slinging Marvel sequel’s box office records.

“The industry has taken away the wrong lessons from Marvel’s success,” a studio insider tells Variety. “Higher budgets don’t equal quality storytelling.”

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The pair will remain involved with DC, though with less authority. Gunn is directing next summer’s “Superman: Man of Tomorrow,” and the two are producing the 2027 television series “The People v. Gorilla Grodd,” with Skyler Gisondo as his “Superman” character Jimmy Olsen and Jimmy Tatro as Gorilla Grodd, and another season of “Creature Commandos.”

It’s unclear what will become of Gunn and Safran’s decade-long creative strategy of sequels, spinoffs and stand-alone stories.

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Internally, there’s hope that Latcham — an executive who helped shape the MCU — will get back to basics with DC.

“Jeremy is the kind of guy who would go to Comic-Con to get an autograph from someone,” says another source, “not someone who wants to be there signing autographs.”

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