Why? No one is showing up to watch original content outside of animated films. You can go back to 2010 and see that is the case. Barbie is on track to make 140M this weekend.
Just this year, Asteroid City, M3gan and Sound of Freedom are all original films this year that are profitable. Perhaps Barbie and Oppenheimer will be profitable?
And as for going back to 2010, there have been really profitable original films. In musicals and docu-drama type works alone I can think of The Greatest Showman, La La Land and Bohemian Rhapsody off-hand. It's possible.
What Pixar and many other Disney owned studios are suffering from is a combination of problems, and a culture-war sadly is one of the problems. Not the only problem, but one of the problems.
And I say sadly, because I loathe culture-wars. Personally speaking, I have a long-time family friend that owns a gas station, BP. When the Deepwater Horizon disaster happened in 2010, there was a boycott BP stations. How was my family friend responsible for Deepwater Horizon? He wasn't. But people disparaged his business and actually his station was vandalized. To what end?
Watching what is happening to Pixar is really interesting. Arguably, it is the most successful studio in the history of Hollywood. I remember my step-father telling me as a kid that I should buy all my tools and equipment through Sears because tools are guaranteed for life and Sears will always be around. And why wouldn't he say that to me as a kid? My step-dad passed away over a decade ago. I do wonder somedays how he would react knowing that Sears is dead, for lack of a better term.
I hope Pixar doesn't suffer the same fate as Sears or RKO, Touchstone, Dimension, etc.