After Sinister grossed nearly $80 million worldwide, Blumhouse Productions’ has decided to start work on Sinister 2, likely in an effort to replicate founder Jason Blum’s fortunes with Insidious and the Paranormal Activity series (both of which have used the micro budget model to great success).

Made for a scant $3 million, Sinister took home nearly thirty times its budget in worldwide box office revenue this past October, a respectable number even next to the much larger box office take of the most recent Paranormal Activity film. It only seems natural that Blum would continue that trend with a follow-up, as is being done right now with Insidious 2which is on track for an August 2013 release.

No release date has been announced for Sinister 2, and so far the only names returning to Sinister 2 are Blum, who will produce, and C. Robert Cargill and Scott Derrickson, the creators and writers of the original picture (which Derrickson also directed). It’s almost a guarantee that they’ll co-write the next movie, too, though whether Derrickson will hop back into the director’s chair is unknown at this point. Considering he’s attached to direct Deus Ex: Human Revolution, it seems likely that he’ll only be involved in a writing capacity. Entertainment One will finance the film after acquiring Alliance, the company that backed the first picture.

Casting, on the other hand, is completely up in the air. Ethan Hawke starred in the first film as a true crime writer who finds himself embroiled in the machinations of a demonic entity named Bughuul after stumbling across a box of nightmarish home movies in his attic.

If you’ve seen Sinister, you can safely place your bets on the odds of his return, but that leads into perhaps a much bigger question: Where is Sinister 2 going to take us in the wake of Sinister‘s climax?

It’s possible that the new film will play like an echo of the last, but perhaps it will attempt to advance its mythology instead. Could we see Bughuul, who behaved like something of a supernatural MacGuffin in Derrickson’s and Cargill’s narrative, explored in more depth? If Blumhouse’s history tells us anything, it’s that the latter scenario is more probable – each Paranormal Activity movie plays around with the formula of the preceding installments, building up back-story and mythos as the franchise progresses.

I liked, but didn’t love, Sinister – Hawke’s character is almost too unlikable to be palatable, but damned if some of those scares didn’t have me jumping out of my seat – but I am fond of the micro budget sensibility Blum brings to each of his projects. Even if his financial outlook doesn’t necessarily lead to the creation of movies that thoroughly wow me, it’s always refreshing to see productions approached with the notion that less can yield more.

There’s no release date for Sinister 2, but we’ll keep you updated on the project as news becomes available.

Source: Deadline