A few days ago we reported that this Halloween will be the ultimate horror flick showdown, as Saw VII (in 3D) was to take on Paranormal Activity 2. The Saw connections run deep, as PA2 was to be directed by Kevin Greutert (who directed Saw VI) and Saw VIII had David Hackl (Saw V). That’s a lot of saws and roman numerals. Alas, the showdown may not happen.

Apparently, Twisted Pictures and Lionsgate have reined in Greutert and he is now (by contractual force?) back on Saw VII and Hackl is moving onto another project. Which means the sequel to 2009′s surprise horror sensation (making over $120 million!) has no director, and may not even go ahead with the initially planned October 22 release date. This is typical movie-studio cut-throat behaviour, with Lionsgate probably doing whatever they can to disrupt the production of Paramount’s Paranormal Activity.

Meanwhile, the man behind the original Paranormal Activity, Oren Peli, is busy working on an alien version of his particular brand of home-made fake-documentary, Area 51. If Peli movies fast, perhaps that could fill the gap.