Holland was hired by Universal Pictures to write a sequel to the 1960 Alfred Hitchcock film "Psycho", which since its initial release had been acclaimed as not only a seminal and iconic horror film, but one of the greatest films of all time. Lead actor Anthony Perkins, who had previously displayed apprehension at appearing in a sequel, agreed to do the film after being impressed by Holland's screenplay. The film, directed by Richard Franklin and co-starring Meg Tilly, Robert Loggia, and Dennis Franz, opened at No. 2 at the box office (behind "Return of the Jedi") and went on to gross $34 million.