What has surprised me about Paul Verhoeven's career is that all of his Hollywood films have sported sequels or remakes. Robocop had the abysmal parts 2 and 3 as well as a spin-off TV series and cartoon. Total Recall spawned a short lived TV series and a remake is currently in the works. Hollow Man and Starship Troopers both had Direct-To-DVD sequels. Even Showgirls has a sequel that no-one has seen. Of all these sequels, Basic Instinct 2 is the most famous, and as it turned out, one of the lowest earning sequels of all time.
Why Basic Instinct 2 flopped is difficult to say, as it's not that bad a film. Don't get me wrong, it's not a great film, but there are some serious flaws that outweigh any of the good stuff, and there is a lot of good stuff there.
The sequel was, at one time, due to be directed by David Cronenberg. When asked why he would do a sequel to Basic Instinct, he responded that the film had an amazingly good script. He wasn't wrong. The script is really good, with a great twist, and had that script not been turned into a sequel to Basic Instinct, but was instead allowed to become a film in it's own right, it could have been a great film.
The direction isn't that bad either. It's director, Michael Canton Jones, has directed some great film such as Scandal, Doc Hollywood and the under-rated This Boys Life, with a young Leonardo DiCaprio more than holding his own against Robert De Niro. His direction of this film oozes seriousness and quality, and you get the feeling that he is trying to make a really good film out of this really good script.

Also, by having it as a sequel, you are forced to buy a 50 year old Sharon Stone as a sex goddess that a famous psychiatrist would risk ruining his career over. Although she looks surprisingly good for her age (again, down to surgical enhancements), her sex scenes come across as a bit embarrassing, in the same way that Madonna is when she tries to act like a 30 year old in her videos. Instead of having someone create another great character, Sharon Stone seems to be doing a bad impersonation of Catherine Trammell, still trying to shock like she did in her youth.

IMDB currently gives Basic Instinct 2 a shockingly low 3.9, but I'd has to give it a slightly more generous 4.5. There's some good stuff in there and a great script screaming to get out, but by making it a sequel to a hugely successful erotic thriller from 20 years earlier, it has turned into a huge failure.
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