Psychoanalysis has almost disappeared from the curricula of most American universities, which I illustrate by the case of the department of psychology at my own university, Harvard. Courses on psychoanalysis are very rare there and it is mostly seen as a part of history of psychology and not as a set of ideas that can be useful nowadays. Personality models developed by Freud or Melanie Klein, as well as many more contemporary psychoanalysts, are, however, still very relevant for the humanities. This is particularly the case for Shakespeare studies and I am trying to show that despite the fact that psychoanalysis can enrich this field, less and less students show interest in it or are willing to admit that they themselves may have unconscious reactions. I focus on the usefullness of the concept of projective identification and propose the thesis that is another name for the activities of theater, and indeed for theater itself.