I feel like Hollywood didn't know WTF to do with Star Wars in 1977. It was bigger than anything they'd seen before, it was made by an exceptionally introverted guy in his early 30s, and most of its "stars" were technical advancements.
It's not that much different from today in terms of box office success <> Oscar nominations, with few exceptions like the Avatar films, Return of the King (now 20 years ago) and Black Panther. The Academy would have rather taken public transportation for a year than given Oscar noms to the likes of Endgame or The Force Awakens or Spider-man: NWH, despite the audience - you know the people the movies are made for - saying with their wallets, these are the most amazing movies of their respective years.
In hindsight, it's more embarrassing that Empire didn't get a nom than it is that Star Wars didn't win. They gave Empire a "Special Achievement Academy Award" for Visual Effects, just as they did for ROJ in 83. Ben Burtt got one in 77 for "Alien Creature and Robot Voices".
Doing a little research on the Oscars that year, Debbie Reynolds (Carrie Fisher's mom did the opening song and Mark Hamill and the droids presented Sound Effects to Ben Burtt (pic)
Early in the evening, Star Wars then won Visual Effects, Sound, Art Direction, Costume Design, Original Score, and Film Editing. The articles I've read said most people thought Alec Guinness would win for Best Supporting but he lost to Jason Robards for Julia. Neither guy was even there!
Then Woodie Allen / Annie Hall beat Lucas/ SW for Best Director, Best original Screenplay, and Best Picture.
A great quote from James Cameron about the result: "This little cute relationship story and
Star Wars. What the *****are you people thinking?"
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