It looks as though Doctor Strange in the Multiverse of Madness is pivoting away from the horror genre - and that's a bad mistake on Marvel's part. Director Scott Derrickson is stepping down from Doctor Strange 2. Derrickson is remaining as an executive producer on the film, and he and Marvel seem to be on amicable terms; the only explanation they're giving is that this was due to "creative differences."

That's a pretty standard industry response when a studio and a director part ways. In this case, however, it's not hard to figure out what's really going on. Derrickson is an accomplished horror director, known for chilling movies like The Exorcism of Emily RoseSinister, and Deliver Us From Evil. Speaking at SDCC, he strongly implied that Doctor Strange 2 would be the MCU's first horror movie. More recently, however, Marvel Studios president Kevin Feige walked that back. "I wouldn’t necessarily say that’s a horror film," he observed, "but … it’ll be a big MCU film with scary sequences in it." The director and the studio clearly seem to have disagreed over the extent to which Doctor Strange in the Multiverse of Madness should be influenced by the horror genre. And, in the end, those differences became irreconcilable.

Related: Doctor Strange 2 Should Bring Back Aaron Taylor-Johnson's Quicksilver

It's only the latest disruption to Marvel's Phase 4 plans. Their entire slate had to change after James Gunn was fired (and subsequently rehired), leading to the delay of Guardians of the Galaxy Vol. 3. A high-profile falling-out with Sony Pictures almost led to the MCU losing Spider-Man altogether. But this is probably the most frustrating example to date; because this time round, Marvel Studios is making a big mistake.

Doctor Strange 2 Was The Most Exciting Phase 4 Movie

Scarlet Witch Doctor Strange and the Multiverse of Madness Villain Theory

Doctor Strange in the Multiverse of Madness was easily the most exciting Marvel Phase 4 movie. Benedict Cumberbatch's Sorcerer Supreme made his MCU debut in 2016, and Avengers: Infinity War and Avengers: Endgame positioned him to be a key player in the shared universe going forward. This much-anticipated sequel will also involve Elizabeth Olsen as the Scarlet Witch; there's speculation that her powers are being retconned as magical in nature in order to make her fit into Doctor Strange's corner of the MCU.

What's more, the Multiverse clearly lies at the heart of Marvel's Phase 4 plans. Derrickson had himself indicated that Marvel's concept of the Multiverse was drawn from Doctor Strange #21, which envisioned Earth as at the center of an infinite sea. Alternate Earths - of the type seen in Avengers: Endgame - are just one swim-stroke removed from the center; the further away you go, the more the laws of nature change, and there are even pocket universes such as Mephisto's Hell, or the Dark Dimension. The story potential here is enormous - especially given the involvement of Scarlet Witch, who in the comics proved able to warp reality itself, but a big part of that was wrapped up in those elements being complemented by the horror genre.

Marvel Not Making Doctor Strange 2 Horror Is A Bad Idea

Doctor Strange and Scarlet Witch

It's important to place Doctor Strange 2 in its proper context, because the film is being made at a time when the superhero genre is changing shape. Marvel Studios is still the market leader, but they're no longer at the cutting edge. The last few years have proved that general audiences are eager for the genre to expand beyond its traditional tentpole PG-13 approach. On the big screen, Fox saw successes such as Deadpool and Logan, and they signed off on Josh Boone's superhero haunted house horror New Mutants as well. More recently, Warner Bros. released Todd Phillips' Joker, which became the most profitable comic book adaptation of all time. The same pattern has been seen on the small screen, with the popularity of The Umbrella Academy and The Boys proving that Netflix and Amazon don't need Marvel to make superhero success stories. And as of this moment, Marvel Studios has no answer to the changes in their staple genre.

Related: Marvel Is Beginning To Damage The Superhero Genre

As a horror movie, Doctor Strange 2 could have been just what Marvel needed. While most fans have focused on the idea of alternate timelines, the broader Multiverse could include any number of monstrous extradimensional creatures. One particularly interesting possibility is the quasi-demonic entity named Chthon, an Elder God who dwells on another plane of reality and seeks to conquer our own. In the comics, Scarlet Witch was born at a place that was rich in mystical energy, and as a result Chthon was able to imbue her with latent mystical potential. When that was finally realized, Chthon began to influence Wanda, driving her mad and then possessing her. The horror element here is pretty clear.

Meanwhile, Feige himself has suggested Doctor Strange 2 could introduce supernatural monsters such as vampires and werewolves into the MCU. "Now, with Doctor Strange and the supernatural elements coming into the MCU, it felt like we could definitely start exploring [Blade the vampire hunter]," he noted. Again, in the comics, these creatures were created by mystical forces from other dimensions. Vampires were brought into the world by a cult called the Darkholders, servants of Chthon, who used forbidden enchantments to transform one of their own into the first creature of the night. This would work far more effectively in a true horror, and is something Doctor Strange 2 is now at risk of losing.

The MCU Needs To Expand Into New Genres

Benedict Cumberbatch Doctor Strange with Shoggoth H.P. Lovecraft Multiverse of Madness

Marvel Studios has traditionally been a risk-taker. After all, the MCU was itself a risk, a shared cinematic universe that could have brought every Marvel franchise down if it failed. But, little by little, the studio is losing that reputation. Feige has essentially turned the company into a production line of superhero content, as indicated by the fact they're able to churn out three or even four films in a year. Scripts have a loose "formula" to them, and there's something of a "house style." All this means Marvel can produce a lot of content without making a dud like Josh Trank's Fantastic Four, but they're also unlikely to ever make a Logan or a JokerDoctor Strange 2 could have broken with that; but, clearly, Feige wasn't comfortable taking the risk and making a full horror.

For now, Marvel is probably still safe. The entire superhero genre is booming, to the point where it's no longer a surprise when a superhero flick breaks $1 billion in the global box office. But that can't possibly last forever, and as a result it's only a matter of time before Marvel is pushed outside of their comfort zone. Feige would be better off beginning that process of expansion now with Doctor Strange 2, incorporating new genres into the MCU willingly rather than because he has no choice.

More: Doctor Strange 2: Every Update You Need To Know

Key Release Dates