Has the ‘Saw’ franchise been hacked to death by ‘Paranormal Activity?’ Has its edge been dulled? Rendered toothless?

That’s the question analysts and armchair pundits are asking after the little-sleeper-hit-that-could came up from seemingly nowhere and spooked the entrenched series at this weekend’s box office.

‘Saw,’ a yearly staple in the Halloween horror market since it’s breakout in 2004, was easily knocked out of its top spot by ‘Paranormal Activity,’ which grossed $22 million in its first wide release. ‘Saw’ grossed only $14.8 million.

This despite the franchise’s effort to return to its leaner, meaner self, with an added dash of political relevance. This current installment of SAW has a group of health insurance executives trying to reason their way out of the usual traps, hopefully learning that they are there only because of the arbitrary way they denied health-care for profit.

‘Paranormal Activity,’ originally filmed for a mere $11,000 over seven days by Director Oren Peli in his own home, documents the anxieties of a young couple troubled by a haunting in their new place, with the boyfriend shooting events on video a la ‘Blair Witch Project.’

Now blogs and pundits are buzzing that ‘Saw’ has lost its edge. Some are wondering if torture porn is losing its appeal, especially given the recent ruling in Spain which slapped an X rating on the movie, relegating it to porn theatres. Top critics also seem bored with the franchise, giving it a 25 % rating on Rotten Tomatoes.

Paranormal Activity, on the other hand, has rattled critics and audiences alike, receiving a whopping 90 % fresh rating on Rotten Tomatoes, who applaud its reliance on suspense and intelligent pacing rather than outright gore.

Only time will tell if ‘Saw’ is stuck in a trap it can’t escape from alive.  There are still plans to release ‘Saw VII’ in October 2010 (this time in 3D), and plans for ‘Saw VIII’ are already underway.

(Photo by PR Photos)