Box Office Bomb: The second and third movies in the U.S. For The Next Chapter, Budget, $36 million. Box office, $17 million (domestic), $56,468,971 (worldwide). This led to the third unrelated film having a budget of $17 million. Box office, $5 million in Germany, but allegedly not even 5 figures in the States, where it screened in limited release, was ripped to shreds, and eventually came Direct-to-Video without Warner's involvement (Disney/Miramax distributed it instead).
Dawson Casting: The "high school students" in III are in their mid-20's - or older.
Disowned Adaptation: Michael Ende requested that the movie be killed before release or, failing that, not be associated with his name in any way. They did neither, which prompted him to sue them.
Enforced Method Acting: That look of shock on Atreyu's face and how dazed he looks getting up after he kills Gmork? That was real. Apparently, they didn't realize how heavy the mechanical wolf puppet could be, and when they shot the scene, it almost knocked out Atreyu's actor. They decided not to try for a second shot after he revealed the claws almost poked out one of his eyes too.
Franchise Killer: The third film thanks to actually being considered worse than Chapter 2 (which is one of the movies to score a zero on Rotten Tomatoes). OOC characters and the lack of Atreyu and the series' iconic theme song at the end of the movie (which reused a "Born to Be Wild" rendition) were the final nails in this film's bookcover.
The Other Darrin: The second movie has only one of the main actors from the first movie, and the third movie doesn't have any of them.
Troubled Production: As the most expensive movie made in Germany up to that time (and, indeed, the most expensive movie made outside the US or USSR at that time), it's hardly surprising that a bit of this trope was responsible for that:
Poor Noah Hathaway. Right before production was to begin he suffered crushed vertebra in a horse-riding accident, putting him flat on his back in a hospital bed for two months while he recovered. Then the green-skinned look Atreyu has in the book had to be scrapped when it made him "look like fungi" in screen tests. Lastly he was caught underwater during the Swamp of Sadness scenes and lost consciousness before he could be rescued. After the near-blinding noted under Enforced Method Acting, Pedersen decided not to shoot another take due to the risk of further injury to his already battered actor.
Tami Stronach, the Childlike Empress, also got into the injury act, losing her two front teeth shortly before filming started. It took her some time to get used to the hastily-made bridges; in some scenes they left her with an audible lisp.
The scenes in the Swamp of Sadness cost $130,000 per day of filming for the two months it took to film those scenes. This led to two other special-effects scenes being canceled due to financial reasons. One of which, the first appearance of Falcor, left some plot holes as a result.
Ende, as noted under Disowned Adaptation, hated the movie and sued unsucessfully to have either his name taken off it or the title changed shortly before release.
Vaporware: German game developer Discreet Monsters' The Real Neverending Story, which wasn't really getting anywhere even before Discreet Monsters was felled by the end of a tech bubble. The main personnel involved eventually produced a much less ambitious game, Auryn Quest.