Mad Santa slasher as toy factory worker goes berserk. Inept in most departments with occasional flashes of humour and an oh-they-didn't-did-they? ending that defies all. Apparently collectible.
Kid sees Santa (his Dad in costume) fondling his Mom and is a bit traumatized. Three decades later, he's a Santa-obsessed weirdo working in a toy factory and keeping tabs on who has been naughty or nice among the neighborhood kids. As Christmas approaches, he slowly unravels.
Often on 'worst Christmas movie' lists, this really isn't that bad. The acting is decent, especially Maggart, who makes a sympathetic schlub. Falls apart in the final reel, with actual torch-bearing mobs and Jeffrey DeMunn badly over-acting, but the ending is so WTF that it comes across as audacious, especially if you think about the implications. Not quite Larry Cohen territory, but close. Certainly it's more entertaining than true horrors like A Madea Christmas or Fred Claus. Phillip Casnoff's well-permed reporter must be a parody of Geraldo Rivera, especially with his coverage of 'Willowy Springs State Hospital" (Rivera first came to national prominence with his reporting of abuse at Wilowbrook State School on Staten Island).
Note: This was released as You Better Watch Out, but has become better known under its video title, so it remains Christmas Evil here, even if the DVD restores the original titles.