[Movie Bluffs] Is Paranormal Activity based on true story?

In short,No.

Paranormal Activity is not based on a true story, although in the movie it is portrayed as a real incident. The movie is mainly portrayed as based on "real video recordings".

Movies like Paranormal Activity,which is portrayed as based on real video recordings is of a separate genre of movies called "Found Footage". Here, movies are produced with less amount of actors, and the videos are recorded by one of the actors itself. To provide an impression that videos are real recordings, shaky camera effects are used.

The movie "Paranormal Activity" was a phenomenal success, and one of the best profitable movies ever made based on return of investment. The movie was produced with a budget of 15,000 $ and the grossed revenue over 190,000,000 $.

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