Lionsgate is renewing it's low-budget commitment to horror and comedy films. The studio has brought production executive John Sacchi on board to lead the development of this new division, which will focus on smaller films capable of turning huge revenue.

The new division will give upcoming films a budget of $2.5 million dollars a piece, or less, and will attempt to replicate success stories like Blumhouse Productions' Paranormal Activity franchise and Paramount's The Devil Inside, which were made for very little money and become million dollar earners at the box office.

Lionsgate has produced many microbudget projects over the course of the last few years, including the Saw franchise, which led to six sequels and brought in over $800 million worldwide. Creating new and lucrative franchises are the studios main goal at this point in time.