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Katie and Kristi have false memories of their childhood
Because of the events at the end of the third movie, it looks like Katie and Kristi will have been living with their grandma for at least another 10 years or so. However they never mention spending years with their grandmother, only that their house burned down in their childhood. It is possible that they have had their memories... altered either by possession by the demon or as a result of the cult's ritual. Then when they were old enough to have children, the grandmother let them go out into the world with false memories of a house fire and repressed knowledge of the demon.
The Slender Man is the Demon.
The ancestor of Katie and Kristi wanted to get rich so she made a deal with The Slender Man. Since she didn't pay her part of the deal in the form of 20 dollars, he decided to go after the first born son... Besides, when Slendy is in town, kids usually go bye-bye
Dr. Johan is the most badass demonologist on the face of the planet.
A demonologist who can't be bothered to fight a demon that's the worst his psychic medium pal has ever seen? What's he so busy with that he can't show up to help out?
He's in Prague.
Beating the shit out of Cthulhu.
With his BARE HANDS.
This movie takes place in the past of the Warhammer40000 universe.
The demon comes from the Warp, (explaining it's alien footprints and dickish behavior,) and Dr. Johan is the Emperor (also Bat Man).
It wasn't a demon at all
It was old man jenkins in a rubber mask trying to scare off those kids so he could get the Spanish doubloons underneath the house!
Katie wasn't possessed when she stabbed Micah.
In the alternate ending, Katie was just scared out of her mind. She grabbed a knife and stabbed what she thought, in the dark and in her panicked state, was the demon.
Katie isn't the only one being mildly possessed.
Why is Micah such an unhelpful jerkass during the film, I wonder?
Katie was born to be a witch. The demon just wanted to be her familiar.
And her bodyguard. It knew Micah was bad for her and was jealous of his relationship with her. Anyone who ever dated a woman who has a pomeranian knows exactly what I am talking about. Katie likes being possessed once she gets used to it — it's why she smiles so much. She and the demon go off to live happily ever after, fighting crime. Without Micah to hold them back.
The Demon is Katie
Connected to the WMG above. Suppose Katie really is a witch, but she doesn't know it. Her repressed witch side manifests as psychic phenomena, that strikes out at people she knows and acts out her unconscious wishes. The phenomenon carries to every member of her bloodline. In the first movie, Katie's repressed anger at her Jerkass boyfriend Micah manifests as a 'demon' that torments him. In the second movie, the mother's demonic aspect attempts to 'protect' the baby at all costs from outside threats (read: everything, including the unaware human aspect of the mother). In both cases, both personalities merge, however, in Kristi's case, her human side wins out, due to her overriding urge to protect Hunter. However, Katie's repressed anger bites her in the ass, and her Ax Crazy demon persona takes over. Hunter is going to be some kind of mage messiah, and now that Demon!Katie has him, she is free to corrupt him in any way she pleases.
In PA 2, the demon specifically staged 'break in...'
...so that Dan and Kristi would get the cameras installed and record everything. Just to keep fucking with them more.
The Demon is actually a Vampire from the Old World of Darkness
Ok, this one is tough to rationalize, but it works for both movies. The Demon is a Lasombra, which is why it never appears on the video cameras. It has high levels of Dominate (allowing it to possess and control Katie and the Mother), and Thaumaturgy, allowing it to perform acts of telekinesis. The shadow control comes part and parcel with being a Lasombra. Throughout the movie, it's slowly ghouling Katie and the Mother, until it can Dominate them remotely (ie. the end of the film). This is also why it seems most active at night. It also explains the bite marks.
The Demon has some connection to the number 3
All its attacks tend to come near the vicinity of 3 am.
Someone cursed the family in Paranormal Activity 2
The demon only seemed to get strong enough to mess with a large amount of stuff after an extended period of haunting in both movies. However, we see someone/something had completely trashed their house in the beginning of Paranormal Activity 2, way beyond what the demon should have been capable of that early on. Not only that, a necklace that Katie had given Kristi in their youth had been stolen yet nothing else had.
The necklace had some kind of demon-repelling qualities to it and after being stolen, it freed the demon that had tormented them as children back into their lives, very likely intentionally.
It was all a Xanatos Gambit by the demon
Aside from the obvious "he's fucking with us" scenario, Katie's picture gives the impression that the whole thing was planned.
So we have their house burned down while they were kids (hinted to be the demon), and this picture that apparently burned with the house. So why Katie? And why leave it with Kristi? Simple. The demon wanted to eliminate the last traces of their blood-line. We can assume there are no other blood relatives to the sisters because the demon only goes for Katie when exorcised.
The demon implanted the idea in Dan to send it through Katie. Think about it, Kristi-possessed could have made off with hunter and killed Ali at any point it wanted to, but it didn't. Now here's where the wild guessing comes in. The demon made itself known to the sisters, as if knowing one of them would have a son. Once Kristi has Hunter, the Demon is trapped into haunting one sister as part of its bargain to take the first-born son, but it 'knew' them as kids, so it probably wanted them both. It made Dan play into a loophole so it could finish off the blood-line for not repaying its debt.
There will be a , focused on Ali.
Because this is a potential Cash Cow Franchise, some THING will come after her in time for Halloween 2011, in order to keep the connection to the previous two. And it will happen in a college dorm in order to give the most potential succeeding
movies.
The Demon is actually a witch: The Golden Witch Beatrice
It's been implied that The Demon made a pact with their ancestors who wanted to get rich. Beatrice made a pact with Kinzo so he could get rich. It's been implied that The Demon did it For the Evulz. Beatrice also did it For the Evulz (most of the time, anyway), making the both of them troll. And of course, you couldn't forget that both series are based around Kill Them All concept! You can't deny this: The Demon of the Paranormal Activity and The Golden Witch Beatrice from Uminekono Naku Koro Ni
The reason the demon goes after Katie is because her family possesses a Denarian coin.
Well, we already have seen a Fallen that manifests as a living shadow.....maybe Nicodemus is younger than we think...
The demon really was feeding off the fear.
In both movies. When was the biggest demonic event? After someone was freaking out. And it used its new found energy to stir up more fear and panic to become even stronger. He wasn't doing it For the Evulz, but to get stronger. And after being exorcised he didn't have enough strength to repossess Katie.
The Demon was fighting Kristi's maternal instincts
It would explain why He/She/It didn't snatch Hunter when possessing her.
Kristi and Katie made the deal with the demon as children, causing the curse that spans first two movies.
The PA 3 seems to be about their childhood, and this theory certainly makes sense with the storyline so far.
will still revolve around Ali.
Part of the viral campaign for the movie is a flyer advertising "Darren's Timeless Memories", a company that transfers VHS to DVD. Ali will discover the tapes of Katie and Kriti's childhood and use this company to watch the movies in an attempt to discover what exactly is happening. The movie will cut between the tapes of Kristi and Katie as children and Ali in the present day.
The next PA film will revolve around Ali
It'll be a few years in the future and have her desperately searching for her little brother Hunter, and looking for incidents similar to what happened to Katie and Kristi.
After:Dennis and Julie were killed, Lois and the rest of the cult took their bodies back to their home and set it on fire.
This troper had been waiting for the house to catch on fire, except it never happened. However, how could they have covered up the deaths of Julie and Dennis? Unless their bodies were put in their house and set on fire...any injuries they have would be unnoticeable, thanks to the fire.
The Demon has Yellow Eyes...
Katie and Kristi were two of it's special children. It even culminates the third movie by killing their mother...
Katie and Kristi's Grandmother is Flemeth from Dragon Age
She's survived into the modern era, and the whole demon thing is just her using her magical powers, or perhaps her abomination side to spy on and mess with the family. Her entire aim is to possess Katie or Kristi, because that's kind of her M.O. The Grandmother even looks like Flemeth, is a creepy old lady who acts nice at first, and is possessed by a demon. Fits surprisingly well.
The Demon is Nyarlathotep.
The demon started focusing on Katie and Kristi as soon as Julie decided that she wasn't going to have more children.
We never know when Julie decided for herself that she didn't actually want more kids, we just know when she told her mother about it. Prior to that decision, the demon had been focusing on Julie to the extent that Julie was willfully ignoring it to preserve her sanity (which is why she's so adamant that it doesn't exist and refuses to watch Dennis' tapes until it drops a kitchen on her). Because why would the demon focus on the girls - who are too young to have kids of their own - when it still might get that coveted firstborn son out of Julie? Either Julie was fudging some details to her mother and actually couldn't have more kids, or it just never occurred to the demon that it could sabotage her birth control somehow and it immediately jumped ship.
The demon just wants a wife and son.
That's why it possessed Katie and took Hunter. It just wanted to settle down and have a family, it just has a different way of doing that than most people think cause amongst demons, terrorizing people is considered a sign of affection.
The Demon originated in Halloween Town
Alex is not dead.
She was hospitalized after the attack, or she escaped Katie and the hoard of blank-faced women.. Ali will reappear and team up with her to find out what the hell happened to their families. Also...
The final film (assuming it goes past a 5th) will bring Lois back.
She and the coven of women will face off the protagonist(s).
The 5th film will reveal a weakness in the demon.
But, naturally, the protagonist(s) will die before they can use it.
There will be another prequel focusing on the moment in which the demon first appears.
Or perhaps the Latino spin-off will reveal this?
The Latino spin-off will feature Ben's family.
He mentions having an uncle (or grandpa, I forgot) living in Mexico.
Alex's mother from the 4th movie is a member of the coven.
1. She knowingly raised Hunter for the rest of the Coven.
2. Drugging her own daughter with sleeping pills is just a little too negligent.
3. Watch the movie again assuming this, it fits.
Ben's uncle in Mexico is Randy from the third movie.
It would link the movies together even more. Maybe Randy would team up with Ali from 2 to investigate the coven.
Robbie was also a demon.
While maybe not the same demon, Robbie was a familiar of Toby's who was able to take a physical form and mark Hunter. Once he was done with his work, he was kicked out.
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