Variety has announced that Lionsgate, the studio that has been synonymous with horror since SAW came out in 2004, will be adding a division devoted exclusively to low budget genre films.

John Saachi, producer of PUNISHER: WAR ZONE and MY BLOODY VALENTINE, will be overseeing the new arm of the studio. They will be seeking out horror and comedy projects with price tags no bigger than $2.5 million. In this way they are hoping to emulate the success of low-budgeted films like PARANORMAL ACTIVITY and THE DEVIL INSIDE, both of which made back about a zillion times their budget.

Since Lionsgate's acquisition of Summit Entertainment, they have stepped out of the "mini-major" arena to become one of Hollywood's heavy hittings studios. This new operation sounds like it will be going back to the sort of films that founded the company. Whether or not that's a good thing, I'll let you guys decide. Talkback with your thoughts below and stay tuned for further developments from Lionsgate's new horror/comedy division.