To say that Disney and Square Enix has failed to capitalise on the potential of the Kingdom Hearts series is a bit of an understatement. The franchise is iconic to many and has such a great array of opportunities to explore that it has long been pondered as to why we've never really seen the pair explore theatrical or television elements on top of the (infrequent as of late) game launches.
While there has been rumours that a Kingdom Hearts animated series was in production for Disney+ previously, the latest rumours seem to suggest that has been upgraded to the big screen. Disney Insider, The DisInsider, states that the project was conceived as a Disney+ series but the aim is for it to land on the big screen to capitalise on the current trend of video game adaptation success in the box office. It should be noted that this project has not been greenlit and ordered yet, meaning it may never happen, as Disney seems to be favouring making actual games instead of adapting them into TV or film.
Needless to say, it seems like Disney is testing the waters for the idea, which judging by the complex lore and story of the Kingdom Hearts games would no doubt be a risk to develop into a big adaptation. But then again, The Super Mario Bros. Movie became a huge hit, as did Fallout for Prime Video so there's always potential.