Everyone assumed the films would go head-to-head to begin with, but that was called into question when Paramount didn't get around to hiring a director for Paranormal Activity 2 until last week. (It's Tod Williams.) It's a little late to be starting work on a film that's supposed to open less than seven months from now, but the studio says they'll meet the deadline, no problem. Details about the plot of P2 are still under wraps, but if it sticks to the low-budget, do-it-yourself formula of the first one then it probably can be shot and edited in much less time than most movies require.
Adding to the behind-the-scenes drama is the fact that the guy directing Saw VII, Kevin Greutert, didn't want to direct Saw VII -- he wanted to direct P2. He helmed Saw VI, so it would have been cool to have its sequel compete with his new project. Lionsgate didn't think that sounded cool at all, though, and exercised a clause in Greutert's contract forcing him to do Saw VII. Hey, we all know the best work is done by people who are doing it grudgingly. (Slashfilm has a screenshot of Greutert's blog, since deleted, expressing his feelings on the subject.) No word on how, exactly, they forced him to take the job, but I assume his wife was put in a torture machine, and he either had to direct the movie or she would be cut in half. (That's not a joke about the Saw movies. That's a joke about how Hollywood works.)
So Greutert is stuck making Saw VII, which is going to be in 3-D, because everything is in 3-D now, that's just how it is, get used to it, unless Clash of the Titans makes everyone hate it forever and they change their minds by then. Do you have any allegiance here? Do you prefer a 3-D Saw movie or a 2-D Paranormal Activity sequel? Please note that option C, where they both quit while they're ahead and stop with the cynical cash-grabs, is not available.