Bloch won the prestigious SF Hugo award in 1959, the same year that Psycho was published. Bloch had written an earlier short story involving split personalities, "The Real Bad Friend", which appeared in the February 1957 Mike Shayne Mystery Magazine, that foreshadowed the 1959 novel Psycho. However, Psycho also has thematic links to the story "Lucy Comes to Stay".
Norman Bates, the main character in Psycho, was loosely based on two people. First was the real-life serial killer Ed Gein, about whom Bloch later wrote a fictionalized account, "The Shambles of Ed Gein". (The story can be found in Crimes and Punishments: The Lost Bloch, Volume 3). Second, it has been indicated by several people, including Noel Carter (wife of Lin Carter) and Chris Steinbrunner, as well as allegedly by Bloch himself, that Norman Bates was partly based on Calvin Beck, publisher of Castle of Frankenstein. Bloch's basing of the character of Norman Bates on Ed Gein is discussed in the documentary "Ed Gein: The Ghoul of Plainfield", which can be found on Disc 2 of the DVD release of The Texas Chainsaw Massacre (2003 film)
Though Bloch had little involvement with the film version of his novel, which was directed by Alfred Hitchcock from an adapted screenplay by Joseph Stefano, he was to become most famous as its author.
The novel is one of the first examples at full length of Bloch's use of modern urban horror relying on the horrors of interior psychology rather than the supernatural. "By the mid-1940s, I had pretty well mined the vein of ordinary supernatural themes until it had become varicose," Bloch explained to Douglas Winter in an interview. "I realized, as a result of what went on during World War II and of reading the more widely disseminated work in psychology, that the real horror is not in the shadows, but in that twisted little world inside our own skulls." While Bloch was not the first horror writer to utilise a psychological approach (that honor belongs to Edgar Allan Poe and J. Sheridan Le Fanu), Bloch's psychological approach in modern times was comparatively unique.
Bloch's agent, Harry Altshuler, received a "blind bid" for the novel - the buyer's name wasn't mentioned - of $7,500 for screen rights to the book. The bid eventually went to $9,500, which Bloch accepted. Bloch had never sold a book to Hollywood before. His contract with Simon and Schuster included no bonus for a film sale. The publisher took 15 percent according to contract, while the agent took his 10%; Bloch wound up with about $6,750 before taxes. Despite the enormous profits generated by Hitchcock's film, Bloch received no further direct compensation.
Only Hitchcock's film was based on Bloch's novel. The later films in the Psycho series bear no relation to either of Bloch's sequel novels. Indeed, Bloch's proposed script for the film Psycho II was rejected by the studio (as were many other submissions), and it was this that he subsequently adapted for his own sequel novel.
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