Cody Rhodes lost his status as Undisputed WWE Champion on SmackDown after falling to Drew McIntyre in an intense Three Stages of Hell contest. The drama escalated when Rhodes was distracted by a confrontation with Jacob Fatu, which allowed McIntyre to escape the steel cage and capture his fourth world title. This defeat marks a turning point and has sparked speculation about a potential Cody Rhodes character shift as the company evaluates his next steps.
The animosity between Rhodes and McIntyre turned deeply personal, causing Rhodes to display more aggressive, less heroic behaviors during their rivalry. As the storyline concluded on SmackDown, questions arose about whether Rhodes would fully embrace a villainous path now that his championship reign has ended.
Potential Character Changes on the Horizon
After seeing McIntyre exit the cage, Rhodes’s disappointment was visible, fueling rumors that WWE plans to explore a different side of his persona. However, those hoping for a complete heel turn may be disappointed, as reports suggest the change will be more nuanced. According to Cory Hays of Bodyslam.net, the plan for Rhodes is a character transformation, with no confirmed move to a full antagonist role.
This shift is anticipated to make Rhodes a more assertive and conflicted figure—neither entirely a ‘good guy’ nor a classic villain. Since returning at WrestleMania 38, Rhodes has held the position of WWE’s leading face, highlighted by his victory over Roman Reigns at WrestleMania 40. While he has excelled as the top star of SmackDown, some within the WWE fanbase have grown weary of his heroic act during his second title run, calling for a new narrative direction as the Road to WrestleMania 42 nears.
Speculation About Rhodes’s Path Forward and Major Events
Rhodes’s championship loss creates uncertainty about what lies ahead, especially with the Royal Rumble rapidly approaching on January 31st. Although a rematch with McIntyre is possible, their storyline was designed to culminate on last Friday’s SmackDown. Fans are now left wondering if the next major rivalry might be with Jacob Fatu—the Samoan Werewolf—whose interference played a pivotal role in the outcome of the match.
Without the WWE title, Rhodes is likely to enter the Royal Rumble. If successful, he would match the record of three Rumble wins held by Steve Austin. There is growing speculation that Rhodes could face Roman Reigns at WrestleMania 42, completing a trilogy of marquee matches between the two. However, this potential showdown currently seems unlikely to involve the world championship. Alternatively, WWE might use Rhodes’s conflict with Fatu and others to present a more vengeful, anti-hero persona, further shifting his character and setting the stage for new rivalries.
As the WWE Universe reacts to these changes, Cody Rhodes’s impending character transformation promises to be one of the company’s most intriguing storylines, with significant implications for SmackDown, major Pay-Per-View events, and the ongoing development of WWE’s main event landscape.
Not a turn but a character shift
— Cory of Bodyslam.net (@Cory_Hays407) January 9, 2026
